Why the Silicon Valley housing market is extra hot right now

The Silicon Valley housing market is extra hot these days with prices hitting all-time highs. Scott Budman reports.
Stay connected:
Follow us on Twitter: / nbcbayarea
Like us on Facebook: / nbcbayarea
Follow us on Instagram: / nbcbayarea
Follow us on TikTok: / nbcbayarea
Catch up on all the day's news:
www.nbcbayarea.com
Download our mobile app:
On iOS: nbcbay.com/R1BhqYM
On Android: nbcbay.com/rUcA97h
Watch us on OTT:
Add our channel on Roku: bit.ly/3ySK60j
Download our app on Amazon Fire TV: amzn.to/3FmmiEA

[@hoapres]

UNLESS you are in tech then you have NO economic reason to stay in the Bay Area. MAKE as much money as you can along with keeping your living costs to a MINIMUM for a couple of years and then MOVE to a part of the country where you can buy a house for ALL CASH.

[@chasingsunsets87]

That is what I am trying to do

[@hanaluong2672]

Here most of us feel so poor!

[@sfrealestatedealmaker6001]

Tons of Americans moving to the Philippines

[@TC-kn9kk]

tech ppl are suppose to be smart, yet they pay millions for junk homes 😂 the smarter tech people work for companies or start ups with remote work flexibility. the dinosaur companies want you in person to pollute the climate in traffic, kill your wellbeing , and waste $ profit on capital expenses and pay you peanut wages and stock to keep you in overpriced homes.

[@bountiful5732]

even then living here for tech there is still NO economic reason, on top of that people of California are undereducated, rude and have a poor outlook on life...

[@ThomasOsaki]

Nvidia people made good money, but not $1.5M - $2.0M after tax money. Don't make me laugh. Quit pumping real estate that is not thriving with high interest rates.

[@hoapres]

Not in Silicon Valley. Mortgage interest rates don't matter much.

[@andyleo8418]

Reality sucks doesn't it? 😂 Some people have a lot of money. Deal with it dude.

[@jaimel8219]

Yes they made all this money at Nvidia. All they had to do was joining before 2018 and chill. Look at the stock price. Multiply the increase by their initial grants at 200-400k, refreshers every year of 50-150k, and ESPP (discounted stocks).

[@david_lawrence_h2703]

@@hoapres Exactly. Only matters if you need to finance it.

[@ThomasOsaki]

LOL everybody in this thread is disillusioned. you think these large companies just give out ton of RSUs to all incoming employees (not stock options as mentioned by these scammers). Yes, there are many that did very well (Director level above if they joined at good time). That's why every time I drive by their nice campus, most of the cars parked or pulling out from their lot are normal cars.

[@SpencerHsu]

This is bad reporting. If more people are leaving then coming in that how are prices higher? They leave and don’t sell their home? Not how it works.

[@alfeocayabyab8233]

I thought that was odd as well. Perhaps renters are leaving, but people who can buy are coming. Net negative yes, but net positive of those was are more wealthy.

[@SpencerHsu]

@@alfeocayabyab8233not really happening either. Rent should be declining if that’s the case. It’s a hopeful narrative from that association

[@STORM3SHADOW]

I love the Bay Area. Born and raised here and lived in different parts of the Bay, but like most have said, it has changed drastically in the last 10-20 yrs. And not for the better. Overpriced property, rampant crime, congested roads. We can go on and on. I would much rather stay in the area near my family and friends, but we want to upgrade to a bigger home and its just not financially smart to buy anything in the area right now. Esp here in the South bay where home affordability is at its all-time worse. Things aren't going to change anytime soon, unfortunately.

[@michaelwells7348]

You can have it... I would live in the Snow Again, before I would Pay ( $1.9 million for a 3 bedroom Ranch ) built in the 1950s. ....

[@mm.f262]

you mean a garage with 0 bedrooms.. its insane out here

[@hoapres]

It must be nice to have $2M in cash to buy a house.

[@magic_fruit_bat5003]

It is

[@vndragonslayer1]

its easy if u pumped 8k into shiba before 2021. u woulda been a billionaire

[@captng]

It was and being debt free is also a plus.

[@Standoffmuffin]

Blackrock, Vanguard, and Statestreet all trying to buy. 🎉

[@bountiful5732]

these people don't have $2m in cash

[@untouchable360x]

Horrible reporting. Using average instead of median price? Nvidia employees are the only ones buying homes in the area?

[@gteixeira]

Is this a paid ad by real estate owners? The real estate in the Silicon Valley is about to freedive. No one will ever hedge any real estate investments in the Silicon Valley.

[@hoapres]

It's not. Prices aren't going to drop in Silicon Valley.

[@justiceforall007]

The Bay Area is overpriced and always has been. I grew up there. For the same price you can get a couple of houses in Washington and Oregon with some acreage. With the uncertain economy, post-COVID, I would get a remote job in the tech industry and relocate... The era of keeping up with the Joneses needs to give way to practical living, and conserving cash for a rainy day...

[@hoapres]

It's not overpriced to the extent that someone is willing to pay the price.

[@bountiful5732]

yes it is, those who are left are on the last stand@@hoapres

[@johnnguyen4152]

But do they pay for the same salaries in those cities?

[@david_lawrence_h2703]

@@johnnguyen4152 Exactly. Try to get a 6 figure job in Oregon. Good luck with that.

[@LK-bz9sk]

I lived there for 15 years. The kids are grown and my wife and I got a three bedroom older home on 1.5 acres in a small town in east Texas for $170 k when the market was overpriced last year. But no traffic, no drama, people are polite and nobody running around shooting everyone dead here.

[@andyleo8418]

Ok, but how do you like those 100°+ days for FOUR months straight? Not to mention the stifling humidity. Pure hell. Things are cheap for a reason.

[@AlexiosLair]

​@@andyleo8418this is a price worth to pay for quiet and affordable place. Especially for those of us who cannot tolerate cold humid weather.

[@karencarpenter5845]

What happens in California eventually happens to all of the other states it just takes time.

[@Modularhandle]

Propaganda. Over-valued.

[@bountiful5732]

they can't let the crown jewel go, i mean there's bloodshed behind the San Francisco peninsula 1846

[@gloriousgearhead5367]

Boomers can sell their house for a great price now and retire in a different state.

[@miket4234]

why we taking the average price not median??

[@chasingsunsets87]

That is what I have been thinking as well

[@mm.f262]

@@chasingsunsets87 because its not a stats class. The TV audience understands the word average. Mention median and The the word "median" will suddenly become a top ten google search

[@Doty6String]

I fucking give up

[@Bill-vo1wn]

Never TRUST anyone that turns off COMMENTS. 😊

[@bountiful5732]

🤣

[@accesstw28]

Still cheaper than 2021.

[@hoapres]

No it isn't.

[@accesstw28]

@@hoapres my comment is according to compass real estate analysis. What’s yours?

[@VavaMenon-ny4bu]

Yep its cheaper or similar than 2nd half of 2021 so in last 2 years there has been no increase in prices in the Bay . But those who bought homes end of 2020 or early 2021 are way up.

[@waynethompson1115]

I got out of the bay area back in 08'. Far better quality of living. I get to keep most of the money I make😂

[@rigz8225]

Where you living now if you don’t mind me asking

[@waynethompson1115]

@@rigz8225 Idaho

[@msd4743]

​@@waynethompson1115.......anything you miss about the bay area? How's Idaho?

[@waynethompson1115]

@@msd4743 I do miss the variety of entertainment in the Bay area. As far as raising my kids This is a very friendly state. The schools are good. Low crime. Clean air. Great outdoor scenery and activities. Low cost of living with all the modern conveniences.

[@david_lawrence_h2703]

If you had bought in 2008, you'd have 400% your money.

[@atomikmuscle2787]

I lived in bay area for 40 years and a lot of things have changed. Currently, I live in manufacture home in Sunnyvale for $1300 per month. My commute to work is only 5 mins from home and I am saving much as possible for my early retirement and get the hell out of city. I will never buy a house in bay area wasting money on property tax, high utility bills, and etc.

[@ericbwertz]

"[prices] so high that they're actually scaring people away". This may have been news 40 years ago, but... really?

[@Penske_Logistics_Roseburg-Ore]

I'm just waiting for the Housing bubble to bust again, and all property owners will be hundreds of thousands of dollars under water in their properties.

[@miket4234]

🧢

[@biobossx99]

Glad I moved out from the bay area

[@lioneatsthesheep8996]

I hate everything about this city now. This city used to be a modest little city but has now turned into a prostitute of a city. Because of these tech giants, anything and everything is allocated for them-ESPECIALLY the ridiculously high prices for anything and everything in this city. As I finally feel as if I am making way in life with my small business, and growing family, my dream of ever buying a home can pnly be realized when I finally save up enough to move out of state. But how can I save up when I am living paycheck to paycheck because the housing cost here is double, maybe triple from some states like Texas?!?!? Never would I fathom of moving out of state, but here I am approaching 40 and have no choice! This city is going to eat itself alive...... Nobody is going to buy these old, ugly, decrepit homes for 1.5 million. Go check out the homes East of the 87 highway...... Can you believe that these "homes" that used to be called "gang hubs" are worth over $1 million? Better yet, who tf would ever buy them but big corporations who have plans of big developments? I have many, many, many qualms with this joke of a city, this isnjust one of them . Let's not mention how awful this cities ameneties are in a city that boasts over 1 million people. This city is a joke, I regret ever having it tattoed on my back at age 16.

[@karencarpenter5845]

Job migration of America it has always been this way.

[@DemPilafian]

You just gave me a great idea. I'm going to do a crypto startup that builds an AI powered tattoo removal service in the cloud. To the moon! 💰💰💰

[@Werevertumoto]

People love to blame tech giants, when the issue goes way beyond that.

[@MyIOnU]

Great time to sell your houses before the whole city turns into shit.

[@Irene94087]

Sold our Sunnyvale home a few years back....the place is not same anymore.

[@devonboulden2496]

Does that floor emulate the Saturday Night Fever disco floor?

[@hoapres]

Too little supply and too much cash. If you can't pay ALL CASH then save up your money and find a cheaper part of the country to live in.

[@RobustArid379]

I live in Nevada and commute to work driving to. San Jose

[@sasiralla]

Also ridiculously low supply, new homes built

[@Candysweetcandy]

This is not good. This is a sign that inflation will come back and FRB has to raise the rate again.

[@mr.b3168]

Everyone leave the technies so they have no services available to them.

[@Werevertumoto]

Bro the techies then will go somewhere else to use their advanced skills and the american economy won't benefit from that, tech workers pay a ton of taxes, maybe you should ask what the city does with the money, you maybe want to have a chat with the Nimbys and then go back to the city and ask them to explain their zoning laws. Tech industry has brought billions into the US economy, I understand living in the strongest economy in the world has it's own issues and it can get tough, but maybe look at your neighbors and your government and try to figure who allowed this mess?

[@josephnguyen3730]

😂😂 I feel like cold now 😂

[@karencarpenter5845]

Ai. Of course

[@dazzz887]

nah its more people selling in SF and moving down south.

[@hoapres]

Got that wrong.

[@davinxi5926]

Bay Area has lots of talented people! They call it the billionaires circle 😊the value will only go up $$$$$

[@Dimythios]

Not really. One the Super Rich will be ahead.

[@containedhurricane]

The government should've let the population shrink naturally. Smaller population will make life competition less intense and lower property prices as happened in Japan, which will eventually make the citizens happier

[@sam_cs_49er]

How would natural disasters affect the value of homes (major earthquake)?

[@joechen353]

Looking for foodies hidden gems anyone bayarea 🌁

[@jacobjohnston7945]

Sonias kitchen in San jose best cheesesteak around

[@bountiful5732]

california is not a foodie state@@jacobjohnston7945