I think Google layoffs will reduce the overall housing and other costs in Bay Area. On the long run it’s good and nice to have the rotation of ppl to other companies Any thoughts? TC 250k
Housing costs won’t reduce as sellers will just hold on to their property till they get the best offers on their homes again.
As someone who just brought a house, hope that doesn't happen 😄 Likely you are right, but I don't think housing prices will have a huge dip. likely 2-3%?
Prices won't dip much, if any, because there is more demand than supply. The only thing that will change this is a deep recession.
No dip but your home you’ve locked in will stagnate in price. Opportunity Cost
We need the reduced costs. It’s bad enough that jobs are hard to get.
Not a chance. Tech is a rounding error in the bay to begin with.
How the hell do so many people over there make so much money anyway? The only career paths where such high salaries are “accessible” as in a high number of employees under that role make such high salaries are tech, law, medicine. The only other ways to make that kind of money outside of that is either entrepreneurship or just a high level corporate position, both of which have relatively small numbers of people making nearly enough to afford anything north of 1M Compare that to something like DFW where the average home price is like 450K but there are tens of thousands of homes under 400K, which families making ~100K HHI can conservatively afford
Shh don’t tell them about other lcols let these guys stay in Bay Area bubble
Lol you wish. I swear every poor people in the bay area want the exact same thing. Thats exactly why it wont happen.
As much as people shit on California (including me), it is undeniably one of the most sought after real estate… LA and Bay Area are in too much demand
Layoffs are a good thing as long as it impacts your neighbor. It also helps you get promoted to an economist. Once you get laid off you become a philosopher. Good luck and get well op!
I'm loving the rent discounts right now. Keep laying off so I can get a cheaper place and sweeter free months signing specials every year.
Bay area cities had previously banned multiplexes (townhomes) or apartments where people stay on top of each other. Now that they are allowed, seeing more and more of them getting built. This totally changes the cost to acquire a house. Instead of 3M (unaffordable 20K mortgage each month), you have to shell 1.5M, which would translate to < 10k mortgage each month. This is a game changer. Layoffs just aid that transition. People who have a budget of 2M, would have financially stretched to get a 3M house. Now they just relax and get the 1.5M house.
OP would pray for world war 3 to see a 5% dip in housing prices
Houses won't dip much because it's owned by investors anyway. Rent absolutely did dip a fuck ton, or you get 3 months free specials everywhere anyway.
You really think so