High San Francisco Housing Costs Leading to Real Estate Growth in Oakland
San Francisco’s reputation as one of the most expensive housing markets in the nation is quickly becoming an asset for its neighbor city.
While median home prices in San Francisco remain at a sky high $1.1 million, many residents are looking at a potential alternative in Oakland, invigorating the real estate market as home values climb and development spikes.
According to an article by Bloomberg, Oakland is becoming an increasingly popular home for those in the bay area. Despite boasting a crime rate far greater than that of San Francisco, Oakland’s home values, which are on average $400,000 less than those across the Bay Bridge, are peaking interests in the minds of cost-weary San Franciscans.
An influx of residents has led to an increase in home values in Oakland, with prices rising 178 percent since 2011, Paragon Real Estate reports.
As a result, the real estate market there is becoming increasingly competitive, as homes are selling for an average of 17 percent higher than their asking price.
On top of pushing property values through the roof, the dash to Oakland is stimulating development in the city.
Property development companies Blackstone and CityView are teaming up to construct an Oakland apartment complex consisting of 423 new units. The $175 million project is expected to be completed by 2018.
In addition, Boston Properties announced on July 27 its plans to build a 25 story housing complex in the neighborhood of Temescal.
Oakland’s housing market is not alone in terms of outstanding growth. The job market in the city of 406,000 people has grown 16 percent over the summer.
Some companies are in turn following homeowners in their relocation to Oakland.
San Francisco-originated driving service Uber expects to open up its new headquarters across the bay in the former Sears building by 2017.
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