POLL: Developers, Tech Industry Fueling High Real Estate Prices

Posted on April 10, 2018 by

SAN JOSE (CBS SF) — When it comes to real estate sticker shock, a new poll has found that a majority of Bay Area residents place the blame for the high cost of housing on developers and the tech industry.

The Silicon Valley Leadership Group says the steep prices are the downside of a booming economy.

“People love having jobs, but all too often it’s as if we don’t think that jobs — people — need a place to go home and sleep at night,” said Carl Guardino, the organization’s CEO.

Recently, Guardino’s group conducted a poll asking local residents who they felt was responsible for the Bay Area’s sky-high housing prices. Pollsters found that 57 percent of those asked blamed real estate developers, 48 percent said it was the tech industry while another 38 percent laid the blame on local politicians.

Guardino believes conditions will not get any better until the finger-pointing stops and leaders rally together to find an answer.

“Instead of pointing fingers, let’s join hands and actually try and solve the housing crisis that’s impacting all of us in the Bay Area and beyond,” he said.

Local pastor Scott Wagers, a housing advocate, agrees with Guardino. He says too much blame is being shouldered by the tech industry.

“The technology companies are not intentionally driving up the cost of housing,” he said.

But Wagers believes a cooperative action must be taken soon.

“If the demand is here and the money’s here and people can afford it, prices are going to continue to go up,” he said. “But Martin Luther King Jr. said it best — if we don’t bridge the gap between the haves and the have-nots, you’re talking about a decline the quality of a society. And I think that’s where America really is.”

The Silicon Valley Leadership Group says addressing the housing issue is vital to the Valley’s longterm success. Not only is it important to attracting top talent, it’s important to convincing people working here now not to move away.

Article source: http://sanfrancisco.cbslocal.com/2018/04/08/poll-developers-tech-industry-fueling-high-real-estate-prices/

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Below-market-rate condo listed for under $300K: It could be yours—with stipulations

Posted on April 9, 2018 by


  • 63ea6 920x920 Below market rate condo listed for under $300K: It could be yours—with stipulations

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This below market condo, asking under $300K, could be yours if you can qualify.

This below market condo, asking under $300K, could be yours if you can qualify.

Photo: Marina Tsang • Coldwell Banker


This below market condo, asking under $300K, could be yours if you can qualify.

This below market condo, asking under $300K, could be yours if you can qualify.

Photo: Marina Tsang • Coldwell Banker


This below market condo, asking under $300K, could be yours if you can qualify.

This below market condo, asking under $300K, could be yours if you can qualify.

Photo: Marina Tsang • Coldwell Banker


This below market condo, asking under $300K, could be yours if you can qualify.

This below market condo, asking under $300K, could be yours if you can qualify.

Photo: Marina Tsang • Coldwell Banker



This below market condo, asking under $300K, could be yours if you can qualify.

This below market condo, asking under $300K, could be yours if you can qualify.

Photo: Marina Tsang • Coldwell Banker


This below market condo, asking under $300K, could be yours if you can qualify.

This below market condo, asking under $300K, could be yours if you can qualify.

Photo: Marina Tsang • Coldwell Banker


This below market condo, asking under $300K, could be yours if you can qualify.

This below market condo, asking under $300K, could be yours if you can qualify.

Photo: Marina Tsang • Coldwell Banker


This below market condo, asking under $300K, could be yours if you can qualify.

This below market condo, asking under $300K, could be yours if you can qualify.

Photo: Marina Tsang • Coldwell Banker



This below market condo, asking under $300K, could be yours if you can qualify.

This below market condo, asking under $300K, could be yours if you can qualify.

Photo: Marina Tsang • Coldwell Banker


This below market condo, asking under $300K, could be yours if you can qualify.

This below market condo, asking under $300K, could be yours if you can qualify.

Photo: Marina Tsang • Coldwell Banker


This below market condo, asking under $300K, could be yours if you can qualify.

This below market condo, asking under $300K, could be yours if you can qualify.

Photo: Marina Tsang • Coldwell Banker




Below-market-rate units, the city’s answer to San Francisco’s unaffordable real estate, come up for sale rarely.

Here’s the latest: a junior one-bedroom on the corner of Market and Mason, asking $249,889.

The unit

This property is a 613-square-foot condo on the top floor of a 28-unit, five-floor building.

Circa 2007, the compact apartment includes a full kitchen, dining nook, and a separate bedroom. All appliances are extra and parking is not included.

The monthly HOA fee of $593 pays for “Water, Garbage, Ext Bldg Maintenance, Grounds Maintenance, Outside Management, Internet,” per the listing.

The five most expensive zip codes in the Bay Area.


Media: San Francisco Chronicle



The rules

If you want the chance to own #503 (the street address is alternately listed as 30 Mason St.where the entrance to the building is or 942 Market St.where the facade faces Market), you must jump a few hurdles.

First, you must qualify: You need to be a first-time homebuyer and income eligible. In this case, income eligible means a maximum income for one person of $80,700.

You must also complete/obtain the “Application, loan pre-approval, homebuyer education certificate, and SF Purchase Contract” prior to 4/24/18 by 5pm.






This packet, once complete, is your ticket to the lottery. You may or may not win the house even after all this work.

AS #503 is being offered through the Mayor’s Office of Housing and Community Development (MOHCD), it is subject to “resale controls, monitoring, other restrictions.”

Once purchased, restrictions on BMRs state that the units must be owner occupied 10 out of the twelve calendar months; they cannot be used as rental property. When and if you sell again, the re-sale price will be determined by the city.

Worth it? 

Obviously, any kind of real estate under $300,000 is a rare phenomenon is San Francisco. But is it a welcome one, or is it really just too much work for such debatable advantage?

See the full listing here.

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert 

Article source: https://www.sfgate.com/realestate/article/Below-market-rate-condo-San-Francisco-real-estate-12810943.php

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The San Francisco housing market is so dire that people are leaving in droves — here’s where they’re headed

Posted on April 8, 2018 by

Dubbed the “Silicon Slopes,” the area reaching from Salt Lake City to Provo, Utah, is filled with top tech companies, including Adobe, EA Sports, Overstock.com, and cloud software startup Domo. Tech workers who flock to Salt Lake City for its lower taxes, more flexible regulatory environment, and natural amenities may find they can actually afford a home near the office.

The National Association of Realtors reported that the salary needed to buy a home in Salt Lake City was $59,521 in the last quarter of 2017. In San Francisco, it’s at least $173,783.

Article source: http://www.businessinsider.com/san-francisco-housing-so-expensive-people-leaving-2018-4

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Looking to Buy a House in the Bay Area? Now Might Not be the Time

Posted on April 7, 2018 by
e7228 Housing exodus Looking to Buy a House in the Bay Area? Now Might Not be the Time

A recent report by Unison Homeownership Investors ranked the San Francisco-Oakland-Hayward-Metro area as the least affordable place to live in the country, with an annual salary of $231,216 needed to buy the median home.

Unison’s index determines how affordable a given market is by estimating how long it would take a person earning the median salary to buy a home at the median price, assuming a 5 percent savings rate.

The report also states that over the past decade, home prices in almost all major U.S. cities have increased. San Francisco is no exception: the NorCal city has seen home price appreciation far outpace any historical precedent, growing as much as 10 percent year-over-year.

This increase and astounding cost has prompted many would-be home buyers to abandon their dream of homeownership as it seems completely out of their reach. San Francisco is known for attracting young millennials due to the major job growth occurring, but the cost to enter the housing market in these areas is proving too daunting for some.

The report also indicates that monthly rents paid by renters in most cities across the U.S. have also increased significantly, putting additional pressure on those who are trying to save up for a down payment on a home.

When zooming in on cities rather than metro areas, the numbers grow even bigger. In New York City proper, the required salary to buy a median home is an astounding $418,482, which makes it the least affordable city in the report. San Francisco proper is next, where residents need a salary of $349,650 to buy a median home.

The Los Angeles-Long Beach-Anaheim metro area ranked in as the second least affordable area to buy a home, as LA residents need an income of $157,728 to buy the median home. The Los Angeles area was followed by the San Diego-Carlsbad metro area, where home buyers need a salary of $139,130.

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Article source: https://www.nbcbayarea.com/news/local/Looking-to-Buy-a-House-in-the-Bay-Area-Now-Might-Not-be-the-Time-479035393.html

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Vacant Businesses Rising in San Francisco, Real Estate Agents Believe ‘Dirty Streets’ Partly to Blame

Posted on April 7, 2018 by

Businesses looking to make San Francisco their new home are increasingly shying away, according to commercial real estate agents and brokers with decades of experience.  Industry insiders blame soaring rent, high labor costs, and a dangerous mix of trash, feces, and used needles scattered along the city’s streets and sidewalks.

“They’re telling us that the city is filthy, that they don’t want to be there,” said Hans Hansson, a native of San Francisco who owns Starboard, the city’s largest independently owned commercial real estate firm.

“We have a lot of people that have initially expressed interest to come out here and have chosen not to,” he said.  “They test the waters — they kind of check things out and you don’t hear from them again.”

Hansson, who employs 22 commercial estate agents, says businesses have backed out of real estate deals in San Francisco, in part, because of concerns over a lack of cleanliness along nearby streets and sidewalks.

“It’s definitely worse and it’s dangerous,” he said.

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Vacant Shops on Rise, ‘Dirty Streets’ Partly to Blame 

While empty store fronts are fairly rare in San Francisco, the number of vacant shops in the city has increased over the past year and has been on a slow rise since 2013, according to industry report by Cushman and Wakefield.

The high cost of rent and labor are partly to blame, but Hansson believes the city’s dirty streets and potential health hazards are making the financial mess even messier.

“It’s the last nail in the coffin for a lot of these people,” he said. “You are seeing and you will continue to see more and more businesses … getting out.”

Hansson is President of San Francisco’s Commercial Brokers Association, which recently invited about 30 commercial real estate agents to talk about the state of retail and the city’s lack of cleanliness.

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San Francisco Streets Described as ‘Cesspool’

“A lot of people who tour on behalf of larger brands are pretty appalled with the state of our streets in the downtown area,” said Pam Mendelsohn, a commercial broker at Cushman and Wakefield who has been helping businesses find homes in San Francisco for more than 30 years.

“People have used the word ‘cesspool,’” she said.

Chris Homs of Lockhouse Retail Group said he frequently has to clear debris and homeless encampments in order to show properties to clients.  “There’s a health hazard of having to step over God-knows-what on the street, whether it be syringes or something else,” he said.

Vacant Businesses Rising in San Francisco, Real Estate Agents Believe Dirty Streets Partly to Blame

“Health Hazard” Scaring Businesses Away from San Francisco

In taking the Investigative Unit on a car ride around San Francisco, Hansson expressed his concern that current vacancies will have a snowball effect. “It just starts impacting all the other retailers on the same block. Before you know it, you could have multiple stores that are vacant and you know this is something the city just really hasn’t grasped.”

In recently surveying 153 blocks of downtown San Francisco, the Investigative Unit discovered trash on every block, 303 piles of feces, and 100 drug needles.

In a recent interview, Mohammed Nuru, Director of San Francisco’s Public Works Department, told NBC Bay Area that half of his Street Cleaning budget — about $30 Million dollars — is spent cleaning up feces, needles and homeless encampments throughout the city.

Vacant Businesses Rising in San Francisco, Real Estate Agents Believe Dirty Streets Partly to Blame

‘Dirty Streets’ Now Clean-Cut Issue in Mayor’s Race

The challenge of cleaning the streets has become a focal point in city politics.  Nearly every candidate for the upcoming mayor’s race names “Clean Streets” as a top priority.

“I saw your story and here’s the thing — it’s one of the things that we have been trying to address for a very long time,” said London Breed, Board of Supervisors President and a mayoral candidate.  “I wasn’t surprised by your story because I get the e-mails, I get the complaints from my constituents.”

If elected mayor, Breed says she will make street cleaning a top priority.  She promises substantial changes within 90 days of taking office, but stopped short of saying the problem would be completely eliminated.

“I am saying that there will be a significant difference — where it’s noticeable.”

Part of her plan includes the creation of “safe injection sites,” where drug users can inject indoors, under medical supervisor, rather than on the street.  Critics argue the centers would essentially legalize illegal drug activity.  Proponents, however, say the facilities would provide rehabilitation programs and services for drug users, and believe safe-injection sites would reduce the number of needles left on the streets and sidewalks of the city since the facilities would be responsible for safely disposing of the used needles. 

“Opening up one of these sites could save us $2.7 million dollars in not just clean up but also hospital visits and social services and other things that contribute to the challenges that we know we are experiencing on our streets,” Breed said. “This is a complicated issue that requires a number of solutions to address the problem. One is clean up. One is behavioral changes.”

Breed believes altering “behavior” across the city is critical and feasible in the fight to address the city’s lack of cleanliness, an issue she now describes as a “public health crisis.”

“What I want to push for is a behavioral change in how people treat our streets … so people stop dumping trash and defecating on the street, and making sure that the money granted to non-profits to reduce homelessness and clean the streets is well spent,” Breed said.  “We have to focus on making sure that the people that we’re paying to do the work they’re out there doing the work,” she said.

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Board to Vote on $2.5 Million Plan to Clean Streets

District 6 Supervisor Jane Kim is also running for SF Mayor.  “I think the state of our streets is an emergency and it has been for months and we absolutely must be addressing it.” In a move that is usually reserved for emergencies, Kim has proposed skipping the normal budget process in trying to reallocate $2.5 million left over from last year’s budget to pay for more street cleaning crews and equipment. Her proposal was initially rejected by the Board of Supervisors’ Budget Committee, but Kim intends to bypass that committee and bring the plan to the full Board of Supervisors for a vote on Tuesday. 

NBC Bay Area surveyed the Board of Supervisors and confirmed Kim is expected to garner a sufficient amount of votes to pass her proposal.  According to Kim, the plan would add two additional street cleaning machines, and 19 more street cleaners by July.

“If we’re going to be a world-class city then we should act like one,” said Hans Hansson.

He recalled a recent experience in trying to convince a business owner to move into a new location in San Francisco.

“I showed a building in a South of Market retail building. I got there early. It was my listing and I was confronted with a homeless man at the door,” he said. “I finally convinced him to get out of there. But he had left a pile of feces right at the door.”

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Article source: https://www.nbcbayarea.com/news/local/Vacant-Businesses-Rising-in-San-Francisco-Real-Estate-Agents-Believe-Dirty-Streets-Partly-to-Blame-479041303.html

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