Making It in the Bay in 2020

Posted on January 13, 2021 by

Bay Area residents have known that Making It in the Bay doesn’t come cheap. But this year, like all things 2020, has really put a spotlight on the housing crisis.

Here’s a breakdown of some of our Making It in the Bay content for a month-by-month review.

February

Let’s start from the very beginning.

The Bay Area’s housing crisis, which has spiraled out of control, can be traced back to before the start of the tech bubble — all the way to the 1970s when local cities were starting to boom, and taxes were rising with them. Details here.

Unable to keep up with rising rents, tenants of an Oakland apartment building protested in a bold way – they went on a rent strike. Their story here.

When it comes to the Bay Area housing crunch, a recent study found more workers in the region are becoming super commuters, traveling long distances to work and back because they can’t afford a home near their jobs. The full story, here.

Now these may be a little hard to watch.

NBC Bay Area’s Scott Budman and Scott McGrew took a look at what you can buy for a certain amount of money in the Bay Area compared to other locations. Click on each number to watch.

March

Before we look back at how the beginning of the coronavirus pandemic affected the Bay Area’s housing market, let’s start with something good.

After spending 10 years on the streets, a former homeless man is now happily living in a new South Bay studio apartment thanks to his new friend. His story below.

Then came the COVID-19 pandemic, having a huge impact on the Bay Area market. Click on the following headlines for some of our stories.

April

Once COVID-19 hit the Bay Area, it became the topic of conversation of almost everything and everyone, especially the housing market. Leaders in most Bay Area counties did what they could to help out.

The coronavirus pandemic seemed to be dumping a big bucket of water on the Bay Area’s once red-hot real estate market, putting the brakes on what was expected to be a booming April. Joe Rosato Jr’s story below.

After weeks, even months, of struggles, much-needed relief came for residents and businesses in April with the stimulus checks. Here’s a story on that topic.

Bay Area Pizza Shop Receives Much-Needed Financial Aid

Though the money was very handy for recipients, it also caused a fight between a tenant and a landlord in the North Bay. Jodi Hernandez’ story below.

May

By May, the pandemic had already had a huge financial impact on most of the Unites Stated, and the Bay Area was no exception.

A study by a Columbia University economics professor said that COVID-19 could lead to 30,000 Californians ending up homeless, as well as 45% surge nationwide. Details here.

Click on each link below for some of our top Price of the Pandemic stories:

The coronavirus led to a lot of people working from home. Below is a story about what effect that had on the housing market.

June

Despite the hardship the coronavirus pandemic brought onto the Bay Area, the housing market remained “hot and expensive” in the beginning of June.

However, soon after, rent prices started to drop. Here are some headlines:

And to wrap up the month, Silicon Valley Pain Index provided a by-the-numbers look at disparities among white, Black, Latino and Asian populations in the Bay Area. The report, below.

July

By July, businesses began adapting to the new norm and residents saw a drop in rent prices in some of the Bay Area, however not all.

Here are some headlines:

Leaders quickly stepped in — some counties extended their moratorium on evictions and gave permissions for more affordable housing.

Some tech companies helped fight the housing crisis by donating big amounts a money.

Click on the stories below for more.

August

After several months of working from home due to COVID-19, many residents started considering leaving the Bay Area.

In an anonymous survey, two out of three tech workers say they would consider moving out of San Francisco, only if they could work remotely for good. So keep the Bay Area salary but not the Bay Area rent. Details here.

Here are some headlines:

September

On the first week of September, the housing market hit new highs and new lows — in the same week.

For the first time in six years, the average one-bedroom apartment in San Francisco could’ve been yours for less than $3,000 a month.

Let’s end the month on something good. Standing 6 feet 3 inches tall, he can’t help but capture attention as he walks through downtown San Jose. Here’s the story of a Silicon Valley superhero.

The anonymous 19-year-old dons a Batman costume to bring food and clothes to his unhoused neighbors — and he’s already inspiring others to follow suit.

Fore more stories like this one, check out our Good News of 2020.

October

While the pandemic caused rent to drop in several cities throughout the Bay Area, in October, San Francisco was hit the harders.

And a new study by Santa Clara-based company Upwork revealed that the Bay Area appeared to get hit the hardest by an exodus in California.

More than 20,000 people and found that cities with the highest housing prices are seeing the largest number of people leaving. And few places are as pricey as San Francisco and San Jose. Details here.

November

So here comes something that may not come as a surprise to many. Bay Area zip codes are among the most expensive in the U.S., according to PropertyShark. Details here.

A group of women known as Moms 4 Housing took over a vacant West Oakland home in November of 2019 to call attention to the plight of many homeless people affected by the housing crisis in the Bay Area.

Well, a year later, one of its founders was elected for Oakland City Council. The incredible story, below.

December

The year wrapped up the same way it started, with rent prices in San Francisco at a drop.

It’s a renter’s market in San Francisco, but a combination of economic pain and new “work from anywhere” policies means rents have plummeted and both renters and property owners are adjusting. Scott Budman has the details here.

By the end of the year, renters across California will owe $1.67 billion in unpaid rent, according to a recent study. NBC Bay Area’s Investigative Unit found that statewide eviction protections for those impacted by COVID-19 are set to expire in February, but a pair of bills would extend them through the end of 2021. The investigation below.

As more small businesses fold because of the pandemic, buildings, even entire shopping centers, are increasingly desperate to find new tenants. So, the city of San Jose stepped in with a plan. Details here.

Article source: https://www.nbcbayarea.com/news/local/making-it-in-the-bay/making-it-in-the-bay-in-2020/2425554/

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Bright outlook for Bay Area home sales, prices in 2021?

Posted on January 12, 2021 by

The financial pain of the pandemic failed to slow the Bay Area housing market and real estate economists forecast an even stronger 2021 with more sales, higher prices and greater demand.

The new year could bring good news for suburban sellers, as buyers embrace remote work and look for space, space and more space in their new homes. The anticipation of near record-low interest rates and the re-opening of large sections of the economy provide the foundation for economists’ optimism.

Jordan Levine, chief economist with the California Association of Realtors, expects demand for homes to remain strong. More buyers and sellers will return to the market as Covid-19 vaccines get distributed widely and more people go back to work.

Levine believes the pandemic may have created a long-term shift in the housing market: buyers less concerned about daily commutes and more focused on bigger homes. “The needs for the house changed fundamentally,” he said.

Pandemic restrictions severely curbed Bay Area home showings and sales in March and April. But the market rebounded quickly in the summer after restrictions were lifted, driven by low interest rates, a strong stock market boosting tech professionals’ income, and the demand for more home offices and outdoor family space.

Existing home prices in eight Bay Area counties hit $982,000 by October, the most recent available data, with fast-selling suburban and luxury homes fueling a 15 percent increase from the previous year, according to a CoreLogic analysis.

Zillow senior economist Jeff Tucker said demand for suburban properties should continue, driven by at least two key factors: remote work schedules and the arrival of millennial homebuyers from urban apartments and condos. The pandemic has sped up decisions by young professionals to leave cities like San Jose and San Francisco, he said.

Zillow also expects a record 20 percent jump in national home sales, largely a function of sluggish activity in spring of 2020 and a burst of demand from buyers and sellers now waiting out the pandemic.

Despite housing costs that remain among the highest in the nation, the Bay Area saw slower appreciation in prices than did most major cities in 2018 and 2019. Tucker said today’s lower interest rates — making monthly payments more affordable — appear to be a vital factor spurring Bay Area buyer demand and lifting prices.

Tucker and many economists were surprised at the resiliency of the residential real estate market during the pandemic. “We’ve just seen the housing market speed up,” he said.

Economists expect interest rates to stay near 3 percent in 2021, a slight bump from the historic lows in 2020. Interest rates on a standard fixed, 30-year mortgage are now 2.7 percent, according to FreddieMac. The low rates will allow buyers to expand their budgets next year while keeping monthly costs manageable for their incomes.

Redfin chief economist Daryl Fairweather expects Bay Area home prices to grow more slowly in 2021 than the predicted growth of 5 percent in the U.S. market. She said Bay Area median prices could be dragged down by sluggish condo markets in the Bay Area’s urban hubs.

The remote work trend, coupled with high Bay Area prices, means the outward migration should continue. For a long time, Silicon Valley has been able to attract new residents simply with good tech jobs, she said.

But if housing prices remain high, Fairweather said, “that’s not going to be as true moving forward.” She believes high-cost cities will need to invest and market more quality-of-life features like restaurants, theaters, and walkable commercial districts that make cities more livable.

The Bay Area, she added, still has plenty going for it.

A new measure approved by California voters in November, Prop. 19, could also increase the number of Bay Area homes for sale. It allows older homeowners to sell their properties and move elsewhere in California without losing favorable Prop. 13 property tax treatment.

Levine said it could also open opportunities for developers to build more communities for older adults.

But the health crisis has also driven up prices for building supplies, increasing construction costs and lengthening the shadow over the state’s overall housing deficit.

It worries Levine, despite the overall strength of housing market. “So far,” he said, “we’ve been able to succeed despite our challenges.”

Article source: https://www.mercurynews.com/2021/01/04/bright-outlook-for-bay-area-home-sales-prices-in-2021

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What’s next for the Bay Area housing market? Experts weigh in.

Posted on January 11, 2021 by

It’s time to buy a condo

Almost every person we spoke with mentioned uncertainty being the continued theme of 2021. The sputtering vaccine rollout is the biggest factor, which will likely dictate how quickly life gets back to “normal.” That said, if you’re in the market for a condo in San Francisco, that means you could get a great deal. “You can buy a condo for 2018 prices right now,” Redfin chief economist Daryl Fairweather said. “I think we will see many more condo listings next year and prices could come down even more this year. As they come down next year, it could be the opportunity for those that have been wanting to buy for a while and were previously priced out.”

She said mom-and-pop landlords may be more likely to sell their rentals after the tumultuous year, increasing inventory further and opening up spaces for even those simply interested in an investment property. “Condo prices are going to drop enough that people will see a good investment opportunity. They’ll be able to get in at a good price. There will be an increase in demand once things open up.” Fairweather said.

Compass real estate agent Emily Beaven said it’s an especially good time to get your foot in the market if you’ve been renting and considering buying. She just advises not to wait too long.


“It is a fantastic time to buy a condo,” she said. “I have heard that foreign buyers will be coming back though, and I think they will snatch up all these condos sitting around that are a deal. I think there are savvy people out there. The savvy people that believe in San Francisco are going to wipe out that condo inventory for us.”

The suburbs are still hot hot hot

In their search for home offices, backyards and more space, many homebuyers began to gravitate toward the greater Bay Area in 2020, creating more demand in places where competition usually wasn’t as fierce. Oakland-based Redfin agent Neal Conatser said he’s seen a surge of interest in Lafayette-Moraga-Orinda that he expects to continue in 2021. “[For buyers from San Francisco], instead of immediately focusing on the Oakland and Berkeley area and trying to replicate the lifestyle they were used to, they’re willing to entertain a more dramatic shift,” Conatser said. “That’s opening up different neighborhoods and different options for people.”

Much of this interest is also driven by the availability of remote work, which for some employers has been decided but many have not. But, that doesn’t seem to concern homebuyers. “I’ve even had buyers say, ‘Even if they do require me to come in [to the office] everyday, hey, maybe I’ll find a new job,’” Conatser said. “Buyers seem confident in what they’re looking for and in terms of their employment.”

This could even push people to move outside the Bay Area. “The trend of people moving away from city centers I think will continue this year,” Fairweather said. “Remote work is going to have people looking farther out, even as far as Sacramento.”

Real estate norms are still shifted

Open houses used to be an important part of the home-buying process, but they likely won’t be back in 2021. For both agents and sellers, this is actually a positive change. “We haven’t seen a negative consequence from not having open houses from a seller point of view,” San Francisco real estate agent Danielle Lazier said. “The majority of people that come to an open house are not the people that are going to buy the house.”

She said it’s also helped buyers who don’t want to dedicate a whole weekend to house hunting. Instead, they can see homes on their own flexible schedule.

Buyers are also expecting more transparent prices, though it doesn’t necessarily mean there’s less competition: “Whether you have 10 offers on a property or five offers, the sellers are still in a position to reap the rewards and it’s still challenging for buyers,” Conatser said.

We’ll hit the bottom of the rental market, eventually

Experts agree we’re not at the bottom yet, but we’re close. “There are still more renters moving out of the Bay Area than moving in,” Zumper analyst Neil Gerstein said. “What we’re watching as things return to normal: Will renters return or will the Bay Area cities become discounted enough that new people want to come in and take advantage of those prices? No matter what, I don’t think we’re at the bottom yet. Prices will continue to decrease in the short term. I wouldn’t say we’re at the bottom yet, but we could be nearing it.”

Igor Popov, chief economist at Apartment List, said it’s normal for rents to be lower right now and it will likely continue through February. Ultimately, it all depends on the vaccine rollout, he said.

“If the public health progress continues on a good track, the normal thawing of the market is when we may see rents climb again,” Popov said. “We usually see the biggest rent increase in July and August. The moment when people feel safer engaging in urban amenities, and if those times line up with the rental market, those rents could bounce back pretty quickly. If the public health rebound misses that, we could see a frumpier year.”

If you’re looking for a new rental in San Francisco, it’s a good time to search. “It’s a great time to make the Bay Area your home. The city is certainly at a discount,” Gerstein said.

Space is crucial, for renting and buying 

Outdoor space and “zoom rooms” were important for house hunters in 2020, but space was essential for renters, too. “We’ve seen a trend of more space per person. Maybe people are less willing to share space with lots of roommates,” Gerstein said. “More space per person could be a trend we continue to see.”

While this was an unexpected year, Popov said the real estate market tends to swing like a pendulum, and we can expect a swing in 2021. “The pendulum really swung from cities toward suburbs last year. Now I think in 2021, and obviously, it depends on public health, naturally, everything will swing back,” he said. “Now everyone will adjust back to a post-vaccine world that hopefully comes soon.”

One thing is certain though, Popov said. “I think we’re going to see a lot of people move in 2021. And the Bay Area will be at the epicenter of the conversation.”

Article source: https://www.sfgate.com/realestate/article/Bay-Area-housing-market-predictions-2021-15857084.php

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‘Citizens Take Arms!’: What a Santa Clara County Republican wrote as mob stormed Capitol

Posted on January 11, 2021 by

Democratic Assemblyman Evan Low of Santa Clara County has called for the resignation of Phil Reynolds, an elected member of the County Republican Central Committee, for comments he made on Facebook last Wednesday, as the U.S. Capitol was under attack.

“The War has begun! Citizens Take Arms!” Reynolds posted to his Facebook page, before heightening the urgency with capital letters:

“FREEDOM SHALL PREVAIL!!!”

“WE MUST DEFEND OUR CONSTITUTION TO THE DEATH.”

Reynolds’s call to arms stirred immediate opposition on social media, and it was not long before he posted another note in all capital letters:

“NO FURTHER COMMENTS FROM ME!”

“SIGNING OFF ALL SOCIAL MEDIA!”

“Out……….”

But that was not enough for Low, who has known Reynolds for two decades since they both served in government for the City of Campbell. Low said Reynolds was a “a genuine and warm human being” who had been radicalized by President Trump’s “poison and lies.”

Low’s Friday Tweet called for Reynolds to resign and tagged the county Republican Party.

  • ‘Citizens Take Arms!’: What a Santa Clara County Republican wrote as mob stormed Capitol
  • ‘Citizens Take Arms!’: What a Santa Clara County Republican wrote as mob stormed Capitol
  • ‘Citizens Take Arms!’: What a Santa Clara County Republican wrote as mob stormed Capitol
  • ‘Citizens Take Arms!’: What a Santa Clara County Republican wrote as mob stormed Capitol

“He is an elected representative and clearly the language that he used was inciting violence,” Low told The Chronicle on Sunday “This person should be shamed, disgraced and removed from office.”

Reached by phone on Sunday at his home in Campbell, Reynolds, 61, denied that he was inciting violence and claimed that he was only responding to images he saw on his cell phone, of mobs attacking the Capitol.

“I observed what I felt was an attempt to overthrow our government. I didn’t know who these people were, and I got very emotional about it,” he said, noting that he was eating lunch at home at the time and not paying close attention. Though he describes himself online as a conservative Republican, pro-life Christian and strong Trump supporter, he said he did not know Trump was at the rally and did not know how it started or who started it. He is an Air Force veteran, and responded as such.

“You take an oath to protect your nation from enemies foreign and domestic and that oath never expires,” he said, adding that his comments on Facebook were non-partisan.

“My statement was that this can’t happen. I was condemning it with my words. It was taken out of context.”

Reynolds is a 1977 graduate of (now-closed) Sunnyvale High School who has real estate holdings across Northern California. He unsuccessfully ran for Congress in March, in a bid to represent the 18th Congressional District. He finished fourth in the nonpartisan primary, with 7.8% of the vote.

He is serving a four-year term at the Republican Central Committee and said he is not stepping down, despite the calls by Low as well as Santa Clara County Supervisor Susan Ellenberg. “They are just fanning the flames,” Reynolds said, adding that they were both spending taxpayer time hounding him on social media when they should be attacking major problems.

Reynolds said he considers Low a friend and has supported him for office and had him to his house for dinner. He would still be willing to sit down to lunch together. There would be much to talk about because because they are both calling for the other one to resign from office.

“I’m really frustrated at his priorities,” Reynolds said. “Our state has major problems, and he’s spending time on a tax dollar chasing people on Facebook.”

Low said that Reynolds should be removed by the Republican Central Committee, but the group has taken no action. Representatives of the Santa Clara County Republican Party did not immediately respond to a request for comment.

“We do not have the luxury as elected officials to just shoot from the hip,” Low said. “He has not retracted his statements and he has stood by what he said.”

Sam Whiting is a San Francisco Chronicle staff writer. Email: swhiting@sfchronicle.com. Twitter: @samwhitingsf

Article source: https://www.sfchronicle.com/bayarea/article/Citizens-Take-Arms-What-a-Santa-Clara-15860232.php

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In pandemic-induced renter’s market, some Bay Area residents still struggle with rent

Posted on January 10, 2021 by

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