Where there is a vibrant job market there is a robust real estate market. The Bay Area is in the midst of an employment boom, and it is not based on smoke and mirrors as the dot.com era was. These are real companies with sales and profits, and lots of upside to all of them – Twitter, Google, LinkedIn, Apple, Genetec, Price Waterhouse and many many more.
The tech industry is the driver, but with this employment boom some of the largest Bay Area employers are city governments, health care, universities, etc. In fact, of the largest 25 employers in the Bay Area, 20 of them are infrastructure and service type entities. They must meet the demand for services of the population growth. And, the challenge of the 4% population growth in the last four years is that new home developers have not kept up with the housing demand. They have added less than 2% of new homes built during this same period, with the population growth out stripping new home sales by two to one. Continue reading