| Boy do owners have it good! Trying to find a rental in | | | | reasonable due to high speed trains and shuttles that |
| this market is difficult. Some of the reasons are | | | | are picking up workers in San Francisco and driving |
| obvious: Good weather, in fact great weather! | | | | them back and forth |
| Beautiful structures and a town that has a real sense | | | | 3. A tech industry on a hiring tear bringing in highly |
| of pride in how it looks and feels. No creative | | | | skilled and well paid workers from Boston to Berlin |
| destruction here, things are preserved and whole | | | | 4. Home buyers deciding to wait out the downturn for |
| sections of the city look as they did when originally built. | | | | better prices and willing and able to afford high rents. |
| Its a very interesting time for San Francisco for a few | | | | 5. Much of the city is protected and cannot be torn |
| reasons. We have wonderful old painted ladies, | | | | down for multi family housing. |
| buildings never to be built again. that occupy much of | | | | 6. Earthquake limits on building heights means less units |
| the land available in this peninsula town and an entirely | | | | can be built |
| new part of the city being recaptured from blight, | | | | We have seen rents double and even triple in a year. |
| creating a kind of competition for the business that did | | | | These new industries pay well and San Francisco still |
| reside in the old neighborhoods. Huge high rise condos | | | | has an aura as an exciting and tolerant place where all |
| have been built in the southern part of the city now | | | | people can be who they want to be. People come into |
| known as South Beach. And now, we have a | | | | town looking for a place to live and quickly become |
| undeveloped area called the Mission Bay being built out | | | | parts of groups of thirty viewing an ordinary enough |
| as new ground for a Bio-Tech Industry and a new | | | | apartment...owners are able to ask for high rents and |
| mediacl center being populated with new restaurants, | | | | the competition is fierce. |
| and start up web 2.0 media companies. | | | | For multi family apartment owners Cash flow is good |
| The real estate sales market has been very active for | | | | and getting better. Multi family housing is still selling and |
| so long and driving prices up for all the good reasons | | | | looking better due to increasing cash flow. Even rent |
| mentioned above plus a lot of speculation. Finally, things | | | | control is not putting much of a lid on rents. When a |
| seem to be rationalizing and although prices havent | | | | tenant moves out, landlords are able to raise the rent |
| dropped that much, sales have definitely slowed and I | | | | to market rates. So a rental studio going for $800 last |
| think there is more to come. | | | | year now has a market rent rate of $1500. This then |
| What does that do for rentals? Makes it tough for | | | | becomes the new base rent, and any rent increase |
| renters and great for owners. | | | | are then capped at low rates by the rent board, but |
| We have a combination of: | | | | the big leg up to market rate has been locked in. |
| 1. Slowing sales translates into potential buyers renting | | | | The only downside for the city is when artists, |
| rather than buying, soaking up available supply | | | | students and older people get priced out, the loss of |
| 2. Commute time to Silicon Valley becoming | | | | diversity concerns me because it enriches us all. |