How will the Bay Area Real Estate Market change with WFH???

Question

Has anyone read this article yet?  I think it clearly articulates the unclear future for the bay area real estate market right now.

https://www.theverge.com/interface/2020/5/15/21258793/bay-area-exodus-silicon-valley-san-francisco-facebook-google-apple-twitter-housing?fbclid=IwAR3z_EVxLTG6s2rjbc_85QT_vNbZpuL7OTrUsgZ3TOlpsdzLA4JvJG2lMyA

Amit M. · Answer

Also keep in mind that when people work from home, their direct environment becomes MORE, not less important. Would you rather be home based in the Bay Area with tons of things to do nearby, good weather, lots of nature, etc. or someplace with little culture, extreme temperatures, bland immediate environment, etc., etc. There is a reason many people aspire to live in CA and especially the Bay Area.  Working from home isn’t going to radically change those aspirations.

Ray Johnson · Answer

@Brian Larson There have been many articles, Tech Roundtables, and CEO interviews about teleworking in the last month, many with wishful thinking of an easier more relaxed workday. Before COVID-19, some companies were starting to pull back on teleworking due to lack of production, or reduced production. Google did a study and after announced not all employees want to work from home, and 2 days ago Google said they will not be going to a mass telework environment. Other Silicon Valley CEOs, have made similar comments after polling employees. I forget which CEO is was during an interview on Bloomberg TV said, during this era of layoffs, we know many increases in production are simply employees fearing losing their jobs while their coworkers are being laid off, so they are performing far above normal productivity level.

I think companies will have to find that middle ground between cost savings, workplace morale, and loss productivity.

My company has been in the office every day during the pandemic

I think companies will have to find that middle ground between cost savings, workplace morale, and loss productivity.

My company has been in the office every day during the pandemic

Xavier Avila · Answer

I think it won't change much. Like someone said most companies won't have majority of their employees in WFH. Plus for those who move out the bay there will be another who is dying to live in the bay. After all the demand is there

Steve F. · Answer

Don't underestimate the amenities that California has over most states.  While people who live in expensive places such as San Francisco, the Peninsula, or South Bay may have an option to move from their locale, this doesn't mean that they will leave all the benefits of living in the Bay Area or California.  So I can imagine people moving down toward Salinas-Central Valley area but I highly doubt people will leave the state.

Brian Garlington · Answer

Seems I remember this same sort of article coming out around the dotcom timeframe........"People will work from home on their computers and the biggest problem the Bay Area and Silicon Valley will have is if there will be enough people to buy houses."

How did that work out again? :-)

I think what will happen is it will allow the Facebooks and the Googles of the world to hire MORE workers. The people that want hope to be on a faster career track will still want to come to an office and be able to network in person with "the right people".....and those who work remotely may not necessarily want to be a VP, but will be happy to be a department head or worker bee...........which will in turn give them more time to spend more time with family and/or creating their own business or doing a side hustle.

Tom Makinen · Answer

The venture funds still live here.....

Daniel Han · Answer

I have been here in the bay area for 21 years working in tech. Even if companies like twitter and square allow employees to work from home permanently, I don't think most companies will follow it and causing a large number of people leaving CA.

Many of us already experienced working with remote sites and fully aware of the inherent inefficiencies. Remote sites such as India works because the cost is substantially less and we can hire more to overcome the inefficiencies.

Ask yourself if you would pack everything and move to Nebraska because you can work from home. We all know companies come and go. when things go bad, people are let go. if you get laid off and there are no other options nearby, you might have to come back to where jobs are.

I can see people moving to cheaper nearby areas such as Eastbay and down to Gilroy. But moving to another state? I highly doubt it unless another state with high tech companies nearby.

Amit M. · Answer

My favorite part was how speculation of San Francisco’s demise began back in 1874 (post gold rush.)

Hasn’t happened yet!

Brian Larson · Answer

It is interesting that Facebook and other large tech companies have come out to say that if people live in cheaper markets, they will be paid accordingly.

https://www.bloomberg.com/opin...

How will the Bay Area Real Estate Market change with WFH???

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