Photo by Juhasz Imre from Pexels
Major corporations can change nearly everything about their surrounding areas and their effect on residential real estate can be truly substantial. The concentration of wealth in areas like Silicon Valley and Seattle has influenced even the most basic properties, causing otherwise unremarkable homes to be worth over a million dollars based on their location alone. We'll look at the patterns of residential real estate from the past and the predictions of the future.
Much like the stock market, there's a flurry of activity in the real estate market when anticipation is in the air. Just the announcements that Amazon's HQ2 would be in Long Island City caused a major influx in properties both in and around the area. But the long-term effects for real estate aren't quite as extreme.
Once Amazon switched their allegiance to Arlington, the value of the Long Island City cooled back down to its original levels. Even in the D.C. area, the effects have been moderate. After a year, Arlington saw some increases in value for homes near the future campus, but its mid-2030s arrival is causing some degree of hesitation for owners and developers.
The areas that see a steady climb are typically those that bring in a stream of businesses. These cities and towns attract diverse populations who contribute their talents and create a personality that others want to be a part of. Los Angeles made headlines for becoming its own haven for tech talent, creating the so-called Silicon Beach that spans through Santa Monica, Hermosa and Venice.
Google, YouTube, Snap, Inc. and Hulu are just a few corporations with offices in Silicon Beach. With San Francisco pricing even successful companies out of the market, the demand for luxury real estate in the LA area has increased due to the influx of well-paid engineers, developers and leaders.
A single industry, such as oil or tech, can quickly raise the average salary to epic proportions. In Gillette, WY, a city dominated by fossil fuels, the average cost of a home increased from $236,978 to $272,100 over the course of just 7 years. So while Arlington may not have seen the immediate jump they were looking for, it may only be a matter of time.
You can see prices being pushed up all over the country due to corporate investment. From Boston to Miami, it starts with the areas directly surrounding the area of the business before being pushed out to the suburbs and beyond.
Terese Ferrara is a long-time resident of the Bay Area and has been a partner with the Goss | Ferrara Real Estate Team. She and her husband raised their two daughters in San Jose, where she successfully continues to build her real estate career.
After earning a bachelor’s degree from San Jose State University, she went on to teach in the San Jose Unified School District for 9 years. Transitioning to real estate was a logical choice, utilizing her patient demeanor to educate all levels of buyers and sellers. Knowledge and experience demonstrate her vested interest in delivering the highest level of care and professionalism to every client. She consistently strives to exceed her client’s expectations throughout the entire real estate transaction and remains a trusted advisor long after each close.
As a board member on KW Bay Area Estates’ Associate Leadership Council (ALC), she aids in support of culture and professional development strategies for over 180 associates. Terese is also a Director for the Santa Clara County Association of Realtors Foundation, which supports community service initiatives in Silicon Valley.
Terese is the consummate real estate professional dedicated to providing unparalleled service to her clients through ongoing training and education, keeping her on top of the dynamic market and latest real estate trends. Her high-touch approach coupled with honesty and integrity support her commitment to her client’s real estate needs.
