First of all, this problem is the fault of NIMBYS
Some friends and I were talking home prices over drinks the other day and we thought about ways for The Bay Area to add thousands of affordable houses without adversely affecting existing homeowners locked into mortgages or second mortgages. I think the only solution is urban infill. Urban infill would revitalize older areas in the urban core while leaving the greenspaces that every outer burb has implemented largely in place.
But then, I suspect they cant be affordable unless there are literally thousands of new units that come online at the same time which is never gonna happen. If the name of the game is to retain middle class families with children then we need to do more, a lot more.
The last 10 years has seen a meteoric rise in housing prices in San Francisco and environs. If we included San Jose, then the average would actually be higher.
According to The California Association of Realtors
San Francisco-Oakland-Fremont, CA MSA Average Home Price
April 2006 $744,070
April 2005 $723,070
April 2004 $634,830
April 2003 $554,560
April 2002 $529,950-dot com crash
April 2001 $483,850-dot com crash
April 2000 $469,250-dot com crash
April 1999 $351,170
April 1998 $322,780
April 1997 $284,820
April 1996 $218,710
San Francisco City
April 2006 $914,700
April 2005 $879,520
April 2004 $790,010
April 2003 $672,990
April 2002 $633,300
April 2001 $582,460
April 2000 $541,980
April 1999 $458,100
April 1998 $425,800
April 1997 $363,400
April 1996 $254,500
And I dont think developers could be enticed into building less expensive. I think we need at least 100,000 2-3 bd condos for as low as $100,000.
Here are some properties currently for sale in East Oakland..an area that amplifies the mess we've made of things.
East Oakland is the cheapest place in the Central Bay Area(depending on what you consider "Central"). To put things in context, The Median Home Price in The San Francisco-Oakland-Fremont MSA is currently $744,000(Apr 2006 according to The California Association of Realtors)-so while these prices may appear excessive to outsiders, they are relatively inexpensive in The Bay Area.
East Oakland
$500,000
4 Bed, 2 Bath
934 Sq. Ft.
0.09 Acres
1646 71st Avenue(high to very high crime area)In 2000, this would have been marketed for around 100K. The 70s-105th Aves in East Oakland is the bloodiest and most dangerous section of Northern California-but all things considered, have seen a huge influx of new businesses and lots of development as far as Intl Blvd(the main thoroughfare)-the fastest growing segment of homebuyers in this area is immigrants
East Oakland
$509,999
2 Bed, 1 Bath
897 Sq. Ft.
No address, but zip is 94602, which is actually not bad for the most part. Half of this zip code is actually quite wealthy and extremely yuppiefied(the hilly section that is)with lots of established white, black and asian households-and then the part that skirts 580, such as this house, are home to long time black and asian households
East Oakland
$515,000
2 Bed, 1 Bath
851 Sq. Ft.
4419 Bancroft Av(moderate to high crime)Hispanic Immigrants are really snapping up properties in this neighborhood quickly cause its above International Bl, where Oakland's Latino Hub appears to be extending south from Fruitvale.
In Oakland, once you get into the 600s, you can either spring for a tiny house in a decent neighborhood-or a bigger house in a questionable area.
East Oakland
$615,900
3 Bed, 1.5 Bath
1,647 Sq. Ft.
0.12 Acres
5177 Fairfax Ave-this area is a pocket of prosperity within the hood. Professional and Upper Income Blacks(those who choose not to make the "ascent" into The Hills) constitute the majority of the population. Pretty much the area is safe-ish but the surrounding areas can be violent.
East Oakland
$650,000
3 Bed, 2 Bath
2,034 Sq. Ft.
0.12 Acres
2577 99th Ave. Below 580(The psychological boundary between the haves and have nots in The Town), but not far below. This house is above the Deep East near Bishop O'Dowd(Oakland's largest private school)-once again, a large middle to upper income black population dominates this area, crime is not that bad in this particular section of The Deep East
East Oakland
$749,000
3 Bed, 2.5 Bath
1,566 Sq. Ft.
0.07 Acres
Norton Ave in Redwood Heights, a middle to upper middle class neighborhood. One common factor in even many of Oakland's wealthier areas is lots of racial diversity-this particular section is no exception.
East Oakland
$925,000
3 Bed, 3 Bath
2,800 Sq. Ft.
0.15 Acres
4190 Laguna Ave, A neighborhood called Lincoln Heights. This area and the surrounding areas is considered "Lower Hills" because its elevation is about 300-600 ft above the bay but not as high as Montclair et al. This lower hills can be characterized as quiet, safe, upper middle class and home to lots of San Francisco-bound commuters
Lastly,
I cant find the pics, but at least a dozen single family home sales in the hood(moderate to high crime) have surpassed the $1 Million mark in East Oakland in the past year-quite a milestone for that particular market-I know of one that sold for 1.6 Million in the 20s. It was a house that had 6 bd/3bth on .10 acres.
Sometimes I just feel like throwing up my hands. It sucks for young and middle class families and singles to buy here-that is not cool, its not bragworthy and it certainly isnt acceptable. Its downright shameful.
Some friends and I were talking home prices over drinks the other day and we thought about ways for The Bay Area to add thousands of affordable houses without adversely affecting existing homeowners locked into mortgages or second mortgages. I think the only solution is urban infill. Urban infill would revitalize older areas in the urban core while leaving the greenspaces that every outer burb has implemented largely in place.
But then, I suspect they cant be affordable unless there are literally thousands of new units that come online at the same time which is never gonna happen. If the name of the game is to retain middle class families with children then we need to do more, a lot more.
The last 10 years has seen a meteoric rise in housing prices in San Francisco and environs. If we included San Jose, then the average would actually be higher.
According to The California Association of Realtors
San Francisco-Oakland-Fremont, CA MSA Average Home Price
April 2006 $744,070
April 2005 $723,070
April 2004 $634,830
April 2003 $554,560
April 2002 $529,950-dot com crash
April 2001 $483,850-dot com crash
April 2000 $469,250-dot com crash
April 1999 $351,170
April 1998 $322,780
April 1997 $284,820
April 1996 $218,710
San Francisco City
April 2006 $914,700
April 2005 $879,520
April 2004 $790,010
April 2003 $672,990
April 2002 $633,300
April 2001 $582,460
April 2000 $541,980
April 1999 $458,100
April 1998 $425,800
April 1997 $363,400
April 1996 $254,500
And I dont think developers could be enticed into building less expensive. I think we need at least 100,000 2-3 bd condos for as low as $100,000.
Here are some properties currently for sale in East Oakland..an area that amplifies the mess we've made of things.
East Oakland is the cheapest place in the Central Bay Area(depending on what you consider "Central"). To put things in context, The Median Home Price in The San Francisco-Oakland-Fremont MSA is currently $744,000(Apr 2006 according to The California Association of Realtors)-so while these prices may appear excessive to outsiders, they are relatively inexpensive in The Bay Area.
East Oakland
$500,000
4 Bed, 2 Bath
934 Sq. Ft.
0.09 Acres
1646 71st Avenue(high to very high crime area)In 2000, this would have been marketed for around 100K. The 70s-105th Aves in East Oakland is the bloodiest and most dangerous section of Northern California-but all things considered, have seen a huge influx of new businesses and lots of development as far as Intl Blvd(the main thoroughfare)-the fastest growing segment of homebuyers in this area is immigrants
East Oakland
$509,999
2 Bed, 1 Bath
897 Sq. Ft.
No address, but zip is 94602, which is actually not bad for the most part. Half of this zip code is actually quite wealthy and extremely yuppiefied(the hilly section that is)with lots of established white, black and asian households-and then the part that skirts 580, such as this house, are home to long time black and asian households
East Oakland
$515,000
2 Bed, 1 Bath
851 Sq. Ft.
4419 Bancroft Av(moderate to high crime)Hispanic Immigrants are really snapping up properties in this neighborhood quickly cause its above International Bl, where Oakland's Latino Hub appears to be extending south from Fruitvale.
In Oakland, once you get into the 600s, you can either spring for a tiny house in a decent neighborhood-or a bigger house in a questionable area.
East Oakland
$615,900
3 Bed, 1.5 Bath
1,647 Sq. Ft.
0.12 Acres
5177 Fairfax Ave-this area is a pocket of prosperity within the hood. Professional and Upper Income Blacks(those who choose not to make the "ascent" into The Hills) constitute the majority of the population. Pretty much the area is safe-ish but the surrounding areas can be violent.
East Oakland
$650,000
3 Bed, 2 Bath
2,034 Sq. Ft.
0.12 Acres
2577 99th Ave. Below 580(The psychological boundary between the haves and have nots in The Town), but not far below. This house is above the Deep East near Bishop O'Dowd(Oakland's largest private school)-once again, a large middle to upper income black population dominates this area, crime is not that bad in this particular section of The Deep East
East Oakland
$749,000
3 Bed, 2.5 Bath
1,566 Sq. Ft.
0.07 Acres
Norton Ave in Redwood Heights, a middle to upper middle class neighborhood. One common factor in even many of Oakland's wealthier areas is lots of racial diversity-this particular section is no exception.
East Oakland
$925,000
3 Bed, 3 Bath
2,800 Sq. Ft.
0.15 Acres
4190 Laguna Ave, A neighborhood called Lincoln Heights. This area and the surrounding areas is considered "Lower Hills" because its elevation is about 300-600 ft above the bay but not as high as Montclair et al. This lower hills can be characterized as quiet, safe, upper middle class and home to lots of San Francisco-bound commuters
Lastly,
I cant find the pics, but at least a dozen single family home sales in the hood(moderate to high crime) have surpassed the $1 Million mark in East Oakland in the past year-quite a milestone for that particular market-I know of one that sold for 1.6 Million in the 20s. It was a house that had 6 bd/3bth on .10 acres.
Sometimes I just feel like throwing up my hands. It sucks for young and middle class families and singles to buy here-that is not cool, its not bragworthy and it certainly isnt acceptable. Its downright shameful.