Other Lessons Learned In San Francisco
Although I might have left my heart in San Francisco (and quite possibly lost my mind in a taqueria) I did leave California with a deeper knowledge of the real estate industry. Inman News’ Real Estate Connect gave me a better appreciation for the technologies influencing the real estate industry. The conversations that I had with friends gave me a whole different education of the state of the real estate market and appreciation of why Chittenden County, and Burlington in particular, is a relatively safe and reliable real estate market.
I padded my trip out west with extra days so I would have time to spend time with friends who had transplanted themselves in the Bay area in recent years. The folks I stayed with had recently purchased. Other friends I visited were moving back to the east coast, mostly because of real estate prices. Another friend who is a software developer was doing very well financially and was preparing to renovate his already posh home. Others that I visited were simply trying to make sense of the market and doubted that they would ever be able to afford to live in this city that they were now calling home.
Although real estate prices are considered by the locals to be high in Burlington Vermont they do not compare to the prices in San Francisco. It seemed to me that unless you come from wealth or are making well into six figures, you will not be able to own in the city. On average I would say that comparable homes in San Francisco are 2-3 times more expensive than what you would find with homes in Burlington. Although, salaries are higher out there they are not 2-3 times as high. I heard a story of a one bedroom apartment selling for over $600k in San Francisco…and it didn’t even have a kitchen!
Many young professionals are moving out of the city in order to own. The friends that I stayed with were living in the Oakland Hills, in a very desirable neighborhood just a short commute from SF. I loved the architecture that I saw in this little neighborhood. Little mid-century tract houses built on hillsides overlooking canyons. Very cool homes, but they weren’t cheap and neither were the property taxes. My friend claimed to be paying about $12k in property taxes for his modest home.
My friends are not only recent homeowners but also recent parents. Even further frustrating for them is that despite the lovely neighborhood that they live in, they claim that they will not be sending their son to public schools. They are opting for private options. As a product of public schools I was immediately turned off by this. I grew up in a household of public school teachers and ingrained view that private schools were for the elite. While I acknowledge that this is a narrow worldview, I also understand better now. In California, despite the high property taxes, the public school systems were failing the children.
My friends described that their public school systems did not have an art program or a science program. Yes, no arts or science program. I didn’t say no sculpture or physics class, I said no art or science programs. What the heck will they be teaching these kids? How can they be expected to get one of these high paid jobs which will allow them to one day purchase a home in an affluent neighborhood like their parents did before them?
The friends that are moving back to Vermont just purchased (with my assistance) a modest home in the Five Sister’s neighborhood of Burlington. Yes, their mid century cape will require some updating but the price they paid was just a fraction of the cost of a similar home would cost in the Bay Area…and they will even be able to send their child to public school.
As I get used to life back in Vermont I am reminded by what attracted me here in the first place. While we may not have the excitement and choices of big city living, we also do not have the dizzying highs and lows. A much simpler landscape and way of life makes living easier. It also makes our choices more affordable and sustainable.
-Dan Cypress
August 26th, 2010 at 10:04 pm
Nice post Cypress! I’m headed out to the Bay Area next week and will surely be talking real estate with my West Coast friends. About half of them own homes there, a couple in Richmond, couple in Oakland and a couple in the Sunset.
Next to impossible to own in the city BUT the rental market is more affordable these days. Just talked to a former VTer who is only paying $100 more per month for an apartment in SF than he was paying in Burlington?! That is just coo coo bananas.
Burlington vs the Haight – tough choice that one.