The Micro-Movement: A Push for Affordable Housing

As Bay Area residents know all too well, finding affordable housing is becoming increasingly difficult.  The recent tech boom is flooding the market with home-buyers and renters who can afford a significantly larger monthly nut than your average blue-collar worker, and their deep pockets are driving prices through the roof.  The median price for a single-family home in San Francisco and San Mateo Counties broke a million dollars this year, and rental prices are higher than they have ever been.

Fortunately, there is a glimmer of hope for people who are ready to sacrifice square footage for affordability.  Micro-houses and apartments, which can be as small as 180 square feet, are gaining popularity in densely populated metros where affordable housing is becoming a thing of the past.  These mini-abodes are devising creative ways to maximize precious space - Murphy beds that fold up and leave behind a dining table, banquette lids that open up for extra storage space, and shelves covering every inch of vertical space.

Seattle is at the forefront of the micro-apartment movement, with somewhere around 3,000 of them already built.  Rent for these apartments can be as low as $800/month in a city where a 400-500 square foot studio typically goes for closer to $1,600/month.  But in San Francisco, where the micro-trend hasn’t gained as much momentum, the price difference isn't quite so dramatic.  A 225 square foot studio in SF still can go for as much as $1,750/month, whereas more generously sized studios can be found just above the $2,000 mark.

Whether or not these apartments can be made more affordable in the SF bay area remains to be seen, but with number of single-person households growing steadily, it is entirely possible that micro homes and apartments will see a spike in demand in the coming years. That's what developer Patrick Kennedy of Panoramic Interests in banking on at least.  He is currently building a high rise micro-apartment complex at 1321 Mission St. in San Francisco, and once complete it will be the first of its kind in the city by the bay.  It will feature 160 micro-units which Kennedy says are "affordable by design".

Downtown Development in Redwood City Threatens Historic Buildings

   by  Jun Seita 

The recent development bloom in Redwood City has put the future of several historic buildings in jeopardy. The city’s Downtown Precise Plan - designed to revitalize the downtown area - has designated 7 historic buildings as candidates for alteration, relocation or removal. And with the city not actually willing to fund the alteration, relocation, or removal of any of these structures, it is likely that most of them are destined for demolition.

City protocol dictates that before a historic structure is demolished, it must first be offered to the public at the price of $1. The catch is that after the structure is purchased, the buyer must pay to have it relocated. This is what is currently happening at a home located at 103 Wilson Street in downtown Redwood City. Starting October 20th, the house will be on the market for a period of 90 days for the price of one dollar. If no one purchases and relocates this Queen Anne Victorian house - which was built circa 1900 – the city will have it demolished to make room for a 7-story apartment complex.

The problem is that while buildings like the one at 103 Wilson Street are considered historic, they aren’t considered historic enough to be worth saving.  According to Gabriel Matyiko of Expert House Movers, a company that specializes in relocating historic buildings, moving one of these structures can cost anywhere from $15,000-$40,000.   Additionally, most of these homes are severely dilapidated, so even if someone did fork out the cash necessary to move the home, paying to have it brought back to code and maintained would be another huge financial undertaking. Typically, for the city to invest this amount of dough into preserving a historic building, someone of historical significance needs to have lived or done something important there. This evidently isn't the case for any of the seven structures referenced above.

But does anyone really care about these decaying buildings?  After all, they're just old, crumbling, unused heaps that are taking up increasingly valuable real estate.  Well, at least one city councilman has expressed concern about the removal of historic Redwood City landmarks.  Councilman Ian Bain is heading a charge to create a plan that will protect these structures in the future.  He says that while a new plan will probably not protect buildings already slated for demolition, it could help protect similar buildings later down the road.

There is no doubt that exciting things are happening in Redwood City.  Developers are lining up at city hall seeking approval for all sorts of commercial and residential projects.  And while there is a definite economic upside to the influx of all of this capital, there seems to be growing concern that it is partially at the expense of the city's culture and personality.

Source

San Mateo Contributes Fair Share to Mid-Peninsula Development

With available real estate drying up in Silicon Valley and San Francisco, developers are increasingly looking to the mid-peninsula to house their projects.  Redwood City has received a lot of attention in the past couple years for their rapid development, and with huge tech companies like Google and Box set to move in, it seems likely that the city will continue to see considerable growth.

But while Redwood City has been making all the headlines as of late, the city of San Mateo has also been developing quite actively.  EBL&S Development is planning a 250-300 million dollar mixed-use project at 1700 S. Delaware Street that will include 599 apartments, 10,000 to 15,000 square feet of commercial space, 25,000 to 30,000 square feet of retail and 2.3 acres of parks.  The project was initially approved back in 2011 but due to financial constraints brought on by the recession, it was put on hold.

Additionally, developer Wilson Meany announced earlier this week that they will soon begin construction on a  4 story, 210,000 square foot office building at the old site of the Bay Meadows horse racing track.  Located near State Route 92 and Highway 101, it is expected that this office space will attract big name tenants.  The building is part of the second phase of a two phase plan to develop the 160 acre site.  The first phase included a Whole Foods Market, 19 live-work condos, 55 single-family homes, 98 townhomes, 575 apartments, a Kaiser Permanente medical center, Franklin Templeton headquarters and  a SMPD station.

   by  pkingDesign 

-Demolition of the old Bay Meadows horse racing track

The Google Empire Sets its Sights on Redwood City

In the latest of Google's seemingly endless commercial real estate acquisitions, the tech giant has reportedly purchased 6 office buildings in Redwood City's Pacific Shores Center, which is currently home to companies like Dreamworks and Openwave.  Google has put a deposit down on the the buildings and it is said that the deal could close later this month.

   by  (nz)dave 

Assuming Google intends to fill these buildings themselves, this purchase will likely go hand-in-hand with increased efforts to get commuter fairies running from San Francisco and Alameda to the Port of Redwood City - an idea that Google has been flirting with for quite some time.  Up until now, one of the major setbacks to the commuter ferry plan was that even if Google employees were to use this alternate form of transportation, they would still have to be shuttled from Redwood City to their Mountain View headquarters.  However, the purchase of 6 commercial office buildings at the Pacific Shores Center - just a stones throw away from the Port of Redwood City - effectively nullifies this problem.

Google's purchase comes just a few weeks after Box Inc.'s leasing of the Crossing/900 development in downtown Redwood City.  Tech companies are are putting Redwood City in their crosshairs, and it is highly likely that what we are seeing now is just the beginning.

P.S. - The Pacific Shores Center currently houses around 1.7 million square feet of office space.  Recent zoning however, could allow developers to bump that total up to around 3 million square feet.

For a list of all current and proposed developments in Redwood City, click here.

Source

   by  Rebecca Williamson 

Equifax and the Origins of Credit Reporting

Credit bureaus are something of an anomaly in the politico-economic world.  They regulate consumer spending - something you might expect from a government agency - yet are private, profit-seeking entities.   They hold people accountable for their past financial transgressions, and try to dictate the occurrence of future ones - yet they have no legitimate jurisdiction over the wallets of the people that they report on.

So if credit bureaus aren't government agencies, how did they come to be? And how did they gain so much influence?  The answer is quite simple - they grew organically from the American economic system.

   by  LendingMemo 

Of the three major national credit bureaus, Equifax, Experian, and Transunion, only Equifax can claim responsibility for the origination of the credit reporting system as we know it today.  It started in the late 1800's when a small time grocer, Cator Woolford, got the idea to record evidence of his customers’ creditworthiness.  When his records became sufficiently voluminous, he began selling them to other merchants in the local Retail Grocer’s Association - and so credit reporting was born.  Cator eventually teamed up with his attorney brother, Guy, and in 1899 the two moved to Atlanta and founded the Retail Credit Company (what would later become known as Equifax).  The business took off, and by the early 1900’s demand for consumer credit reporting had begun to spread beyond just the grocery industry.

But it isn't just the practice of credit reporting that you have Equifax to thank for.  The questionable ethics behind their information gathering practices were ultimately what prompted government regulation of the industry.

By the 1960’s, Retail Credit Company had amassed over 300 branches, and all sorts of consumer data with varying degrees of credibility.  Their credit reports allegedly factored in rumors about people’s marital lives, sex lives, and childhoods, and were distributed indiscriminately to pretty much anyone with a checkbook.  The company was even investigated for offering rewards to employees who managed to dig up the most negative information.  To put it bluntly, they were quickly becoming known as a slimy company.  In fact, it is popularly held that the main reason they changed their name to Equifax in 1975 was to clean up the image they had established under the moniker of Retail Credit Company.

It wasn't until they began to computerize their records in the late 60’s – in turn making them more widely available – that the government finally took action.  In 1970, Congress enacted the Fair Credit Reporting Act, which gave consumers certain rights with regards to what information could be shared about them through credit reports.  Still, even without exploiting details about consumers’ personal lives, Equifax and other credit bureaus have managed to become wildly profitable and influential corporations.  As many adult Americans know, a negative credit report can cripple your ability to progress in life.  Bad credit can impede your ability to enter into homeownership, car ownership, or even marriage, as some people advise that you look into your partner’s credit history before making a lifelong commitment to them.

So there you have it.  What started as a small-time business man stumbling into an untapped market, eventually evolved into a massive corporation with somewhere around 1.5 billion dollars in annual revenue, and an immense amount of influence on consumer behavior - a model of American capitalism.

Green Homes are a Priority for New Constructions

   by  NeoGaboX 

Going "green" has been a hot topic for several years now, but a new survey shows that many builders are now making it a top priority for new constructions.

Among the different features being favored are energy efficiency, indoor air quality, water conservation, and material conservation.

Green Features In New Home Building

The survey found that of the 62% of single-family developers are rolling out 15% of their projects as "green-friendly." Further,  nearly 1/5 of single-family developers are executing 90% of their projects with a green focus. It seems that slowly but surely the green trend is making its way into the top-of-mind for developers, as more and more consumers opt for eco-friendly residence.s

Despite the fact that 3 out of 4 single-family home builders say that energy efficiency is a feature they are pursuing with making their homes greener, according to the survey only 11% of single-family home builders say they are constructing homes that are greener in 2013 than those constructed in 2011.

Source: "Green Building Features," National Associaton of Home Builders' Eye on Housing Blog

Marin County is Healthiest for Kids

  by  davidyuweb 

California has always been touted for its culture of progressively green and health-focused habits, a mentality that seems to bleed into the policies and initiatives that shape the Californian lifestyle. Therefore, it comes as no surprise that the title of healthiest county in the country has been handed to Marin county in California, home to the cities of Marin, San Rafael, and Mill Valley.

According to the University of Wisconsin Population Health Institute's County Health Rankings and Roadmaps program, the county topped the list based on its robust birth weights, low rates of teen pregnancy, and low percent of children in poverty, among other factors.

Other California counties that made the list include San Francisco County (#6) and RealSmart's home turf, San Mateo County (#11).

Here is the full list of America's top 50 healthiest counties for kids:

1. Marin County, CA
2. Norfolk County, MA
3. Hunterdon County, NJ
4. Chittenden County, VT
5. Nassau County, NY
6. San Francisco County, CA
7. Middlesex County, MA
8. Somerset County, NJ
9. Morris County, NJ
10. Bergen County, NJ
11. San Mateo County, CA
12. Hampshire County, MA
13. Howard County, MD
14. Ozaukee County, WI
15. Westchester County, NY
16. Santa Clara County, CA
17. Placer County, CA
18. Johnson County, KS
19. Olmsted County, MN
20. Montgomery County, MD
21. Waukesha County, WI
22. Johnson County, IA
23. Grafton County, NH
24. Orange County, CA
25. Monmouth County, NJ
26. San Luis Obispo County, CA
27. Montgomery County, PA
28. Santa Cruz County, CA
29. Loudoun County, VA
30. Yolo County, CA
31. Fairfield County, CT
32. Middlesex County, CT
33. Fairfax County, VA
34. Washington County, MN
35. Barnstable County, MA
36. Sonoma County, CA
37. Cumberland County, ME
38. La Crosse County, WI
39. DuPage County, IL
40. Delaware County, OH
41. Douglas County, CO
42. Napa County, CA
43. El Dorado County, CA
44. Tolland County, CT
45. Alameda County, CA
46. Washington County, VT
47. Contra Costa County, CA
48. Rockingham County, NH
49. Washington County, RI
50. Hamilton County, IN

SOURCE: US NEWS, "America's 50 Healthiest Counties for Kids"

Smart House

   by  Photo Dean 

Smart Homes, homes equipped with automated systems that control everything from security alarms to temperature control, are slowly creeping into the consumer market. Home automation systems, such as Google-owned  Nest, are at taking center stage in the discussion on the Internet of Things (whereby individual products communicate and are compatible directly with each other), and hope to bring to the table a peace of mind for homeowners whose properties will be fully controllable at the push of a button.

Although it may sound like science-fiction, Smart Homes are quickly becoming a reality. But the questions is, what do homeowners want? The possibilities are endless and the benefits are profound, especially for the elderly and disabled.

To answer these questions, iControl networks, a home automation software company, recently surveyed over 900 respondents to ask what it is that they are looking for in a smart home. We've highlighted some of the findings of the study below:

   by  davic 

HOME OF THE FUTURE?

• 39% of respondents predict that voice-controlled lights and appliances will be the norm in the next 10 years.

• One-third say that automatic HVAC control based on home occupancy will be a standard feature of new smart homes in the next decade.

FAMILY SECURITY

• The majority of respondents (90%) said that family security was a top priority for them in home automation.

• 85% said that fire detection was one of the most important features of home automation systems, with 60%

   by  taberandrew 

LOSS PREVENTION

• 86% said that protecting their personal property (TV's, computers, cars) was one of the most important reasons for using a home automation system.

• Among homeowners, gas leak alerts & remote valve shutoff was the top features for which they would use a home automation system.

ENERGY USE

• 80% said that monitoring HVAC systems for the purpose or reducing monthly bills was an important factor when using a home automation system.

• Two-thirds said that indoor lighting and ceiling fan control is an important feature.

   by  smlp.co.uk 

WATCHDOG

• For pet owners, keeping an eye on their furry ones plays an important role in home automation.

• 52% said that pet monitoring was one of the top 5 reasons to use a home automation system.

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You can read the full study at iControl's website here.

Zillow Zestimates are Inaccurate for the Bay Area

photo by MarkMoz12 

Many clients often ask RealSmart about Zestimates and their accuracy. Time and again, these zestimates prove to be widely off-mark and do little more than confuse and mislead people. 

According to Zillow , the "Zestimate® home valuation is Zillow's estimated market value, computed using a proprietary formula." They show up on their website directly next to the image of the home: 

By Zillow's own admission, the Bay Area market is not its strong point for accurate Zestimates. 

As a real estate company, our job is to not only give our clients the most up to date data, but to provide them with the most accurate price that is appropriate for the current market based on comps, history, and factors specific to each property. As you can see from Zillow’s mere 2-star accuracy rating across all of RealSmart's home counties, this is a human skill that a computer just cannot replicate in this market. 

Pictured Above: A Screenshot of Zillow's Accuracy Ratings For RealSmart's Home Counties

Take for example RealSmart's listing on E St in San Carlos. The property's Zestimate at the time of sale was $735,296. The property, however, sold for $820,000 - that's a difference of $85,000! Another property, also in San Carlos, had a Zestimate of $895,568 at the time of sale and sold for $1,010,000 - a difference of $114,000!

Though both of these examples show Zillow's conservative estimates, it's important that clients know that the opposite can also be true.

"It's difficult for a home seller to be told that their home isn't worth as much as Zillow's Zestimates, especially after seeing those big-numbered price tags. An unrealistically high Zestimate can get a person's hopes up, and bring deep disappointment when the homeowner realizes their home is unlikely to sell for a price even close to what Zillow is telling them. It's important to talk to your real estate agent before making a judgement on the value of your home." - Bryan Jacobs, RealSmart Broker

RealSmart prides itself in its accurate pricing strategy and we urge all clients and potential clients to take Zillow's Zestimates with a hefty grain of salt.

How to Make Your Home More Water Efficient

by  Bert Kaufmann 

58% of California, the peninsula included, is categorized as facing an exceptional drought (the worst category of drought assigned by the United States Drought Monitor).   Now more than ever, it is important that we do whatever we can to cut back on our water usage.  According to the EPA, the average American family of four uses 400 gallons of water per day, with as much as 70% of that being used indoors.  A large portion of that water is used superfluously through appliances and practices that do not maximize performance and efficiency.   Here are some tips on how tomake your home more water efficient:

Install Water Efficient Appliances and Fixtures

The EPA has sponsored programs by WaterSense and ENERGYSTAR that identify appliances and fixtures that meet high water efficiency standards by awarding them a WaterSense label.  Look to replace faucets, showerheads and other fixtures in your home that might be outdated and inefficient with those that have a WaterSense label.

 Replace Old Toilets

Toilets are the main source of water use in virtually every home.  Toilets manufactured before 1992 (before the passing of the Energy Policy Act) can use more than 3.5 gallons per flush, while newer toilets can use as little as one gallon per flush.  Replacing these older toilets with newer, more efficient toilets will not only help conserve water, but it will also save you a butt-load on your water bill.  You can find water efficient toilets at any Home-Depot or Lowes, and you can always look for the WaterSense label to ensure its efficiency.

by  Rob Ireton 

 Check Your Water Heater

Your water heater is a huge energy suck and on average it accounts for around 13% of your energy bill.  Your water heater may have a leak without you even knowing it.  If it does, it’s probably time to get a new one.  You can also make your water heater more efficient by insulating the tank and the first 3-6 feet of the hot and cold water pipes with insulation blankets.  You can order insulation blankets here.

by  FarOutFlora 

Landscaping 

Landscape your yard in such a way that it minimizes irrigation needs.  Plant shrubs, trees and other vegetation instead of a lawn with grass that needs constant watering.  Here are some drought tolerant plants that can be planted in your yard as an alternative to a grass lawn.