In the current slowing real estate market, it’s easy to read the headlines and imagine that sales are plummeting all over the region and it’s becoming a buyer’s
Will real estate continue to grow like in the past? Which area will we see the most growth, in the metro, urban, or rural areas?
As someone who’s been living in the San Francisco Bay Area for two decades, the increase in rent in insane. On the average, people in Oakland pay $1500~$2500/mo. for 1 bedroom apartment. Some people pay $3000/mo. for something that you don’t even own! I’ve lived in my apartment for 10yrs now so my rent is cheap. The new tenants of my building pay more than 3x the amount I pay per month for slightly updated version of my studio. Unbelievable!
If gentrification continues in the metropolitan area, like Oakland, yes, the real estate will continue to grow and soon, there will only be the people who can afford to live here in Oakland, the city where people avoided just 10yrs ago. The cost of living for average people will rise, then the local businesses will suffer and struggle to pay their employees the minimum wage that increases every year. And they will be forced to move or close the business.
Anyway, so unless we come up with the solution to stop gentrification, I don’t see how the real estate will not grow. The area that is most affected will be the surrounding cities of the metropolitan area. Then probably gets bigger and bigger.