Real Estate | The Down Round E5

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To see the craziest housing market in America, look no further than real estate in Silicon Valley. In recent years, ballooning startups couldn’t sign up for leased space fast enough, yet much of that space has become available as the market slows.

How has this affected tech companies? What are implications for other Bay Area locations? This episode focuses on what it’s really like to work, and live, in the most expensive city in the country.

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4 COMMENTS

  1. It's like Vancouver BC Canada except foreign buyers purchase and don't move in, they flip.

    Job negotiating tactic for the area: Neither side does anything, person might come back in 10 years, in that time company loses enough profit to buy a house and a couple of cars. Alternate Scenario: Buy them a house and 2 cars and they will come back in 5 years to hear employer's Elevator Summary.

    Many Employers have invested M's (a few 100's of M's) in buildings and equipment but either saved nothing for wages or simply won't pay enough to live in the city. Result is that they advertise for 6 months (leased) or a few years (bought and can't sell for large profit) and the job remains unfilled.

    Govt. imposed 15% foreign buyers tax and prices dropped ~15% in a bit more than a month. Who came up with their Business Plan. Now tables are flipped but no one blinks.

  2. if i was the mayor of that city, i would pass a law that frees a lease after 2 years after purchase if nothing is done with it, then put a rent cap on housing to keep housing cost down for the non-techs

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