SF-Redwood City Metro Area Among Best for Millennial Workforce

   by  anhgemus 

Seattle-based online benefits and compensation firm, Payscale, recently ran a study in which it pulled data from 650,000 surveys filled out by millennials (those born between the years 1982-2002).  The question they were attempting to answer was, "where are millennials most likely to find the most rewarding jobs"?  The factors they took into consideration were: median pay for millennial workers, unemployment rate in the area (as of June '15), median commute time, percentage of millennials reporting high job satisfaction, and the percentage reporting low job stress.

The study found that the San Francisco metro-area, which they refer to as "San Francisco-San Mateo-Redwood City, was the 2nd most likely place for a millennial to find a rewarding job - behind only the Seattle metro, and just ahead of 3rd place San Jose metro.  However, I suspect there was some favoritism at play, as the SF metro actually ranked as high or higher than Seattle on most of the variables in the study.  Our median pay for millennials was listed at $69,700 (vs. $55,000 in Seattle), unemployment at 3.4% (vs. 4% in Seattle), and the share of satisfied workers at 70% (same as Seattle).  The only variables in the study that Seattle might best us on is commute time and job stress.

Click here to view Forbes' summary of the study and list of the 10 best cities for millennial workers.

I'll concede to Seattle on commute time.  I don't have any experience commuting in Seattle, but we all know how backed up traffic can get around here.

But as for job stress?  I'M NOT STRESSED!!! JUST LEAVE ME ALONE, OK??!!

In all seriousness though - Seattle is a rapidly growing tech hub with companies like Amazon, Microsoft, and Zillow calling it home, and many others opening up offices.  There was even an article floating around a few months ago claiming that tech workers were leaving SF and the Silicon Valley for a more manageable cost of living in cities like Seattle and Austin, which I addressed in a past blog.  But my stance now, as it was then, is that the SF Bay Area/Silicon Valley is the undisputed tech capital of the world, and nothing stands to change that any time soon - especially with tech giants like Google, Facebook, Yahoo, Youtube, Linkedin, Twitter,  and Apple continuing to grow here at mach speeds.

Maybe it is reckless to equate the tech workforce with the millennial workforce.  But since the two are so intrinsically linked, I feel comfortable saying that as long as the SF Bay Area remains #1 in tech, we remain the #1 haven for the millennial workforce.

8/10/2015 - 8/16/2015

8/10/2015 - 8/16/2015

In July we were looking at an average sales price of almost $1.5 million.  Halfway through August, we are looking at a number closer to $1,125,000.  Does this mean prices are cooling off?  Not necessarily.  Homes are still selling at well over asking, and the average list price of the 10 homes that went pending this week was $1,546,300.  It says more about the size/location of the homes than it does about Redwood City's market health as a whole.  The average size of the sales that closed this week was 3 bed, 2 bath 1,492 S/F.  In comparison, the average size of the sales that went pending this week was 4/2 and just over 2,000 S/F.  Redwood City has a great deal of variation in the size of homes and desirability of neighborhoods, so it isn't uncommon to see these numbers fluctuate so much on a weekly basis. 

Whole Foods vs. Trader Joe's: Who's the Better Neighbor?

It seems we finally have an answer to the age old question: which grocery store should I buy next to if I want my home to appreciate, Whole Foods or Trader Joe's? 

Housing data and analytics provider, RealtyTrac, recently ran a study to figure out which zipcodes showed greater home appreciation, those near a Whole Foods or those near a Trader Joe's.  By comparing the current value of homes within these zipcodes to the price they were last purchased at, the study found that homes near a Trader Joe's showed greater appreciation (40%) than those near a Whole Foods (34%).  Homes in the Trader Joe's zipcodes also had higher average property values ($592,339) than those in Whole Foods zipcodes ($5,382), giving us no other choice than to conclude that Trader Joe's is the better neighbor. 

Just for fun, let's take a look at this on the micro-level and compare 94062 (Whole Foods Redwood City) with 94070 (Trader Joe's San Carlos). According to Zillow's home value index, from July of 2013 to July of 2015, home values in 94070 grew 32%, compared to 27% in 94062.  Admittedly, my methodology is probably a bit flawed due to the notorious inaccuracy of Zillow's home value index in the Bay Area, but hey! Maybe there's something to this (not likely). 

Make what you will of this... I've always preferred Trader Joe's anyway. 

Here's an infographic detailing RealtyTrac's study:   

Neighborhood Spotlight: Woodside Plaza

Aerial view of the Woodside Plaza Shopping Center, 1953.  Rows of
ranch-style homes can be seen in the upper-right hand corner.

During and after World War II, Redwood City saw rapid growth. Its population boomed from 12,500 at the beginning of the war, to more than 46,000 by 1960. During that time, the city’s suburbs grew in concentric rings around the downtown area, until a few developers set their sights on what would ultimately become the Woodside Plaza neighborhood (Valota-Alameda/Roosevelt-Woodside). In a short period of time spanning from the late 40’s to early 50’s, a flurry of construction left the area blanketed with 3 bed/2 bath ranch-style homes.

Now one of the most up and coming neighborhoods in Redwood City, Woodside Plaza offers a look and feel similar to Menlo Park’s Willows neighborhood, but with a notably smaller price tag. Pleasant tree-lined streets, quiet cul-de-sacs, close proximity to grocery stores, and a diverse selection of dining options have made this neighborhood a standout amidst Redwood City’s recent surge in housing demand. 

Historically, Woodside Plaza has been known as a starter neighborhood for young families looking to set roots in Redwood City. And with the Henry Ford School District steadily improving its ranking, the area certainly still appeals to young families. But as Redwood City is growing, the neighborhood has seen a wave of renovations of more dated homes - a number of which we’ve worked on and sold. The resulting facelift has created a neighborhood in which more and more people feel comfortable settling long-term. 

We love the neighborhood and plan to stay active there for a long time. In just over 3 months, RealSmart Properties has been a party to 6 sales in the area, making us the neighborhood’s most active brokerage. 

If you are interested in making the move to Woodside Plaza, give me a call and I'll be happy to help you find your new home.

A Case Study on Rent Control: 910 Clinton Street, Redwood City

This article was pulled from the Summer Edition of the RealSmart Quarterly Newsletter: In the last few months we have seen more media coverage on the topic of skyrocketing rents, displaced tenants, and the possible need for rent control. Or, as some politicians refer to it: rent stabilization.  The poster child for this movement can be found in a local 18 unit apartment building located at 910 Clinton Street in Redwood City. Reports say, "every resident of an 18-unit apartment complex in Redwood City, including 31 children, had their tenancies terminated by new ownership that plans a complete interior and exterior renovation of the aging building" (San Mateo Daily Journal, May 18th, 2015).  A notification sent by the new management company on May 1st, gave tenants 60 days to vacate the premises. Most of the units had been going for below market rate, and it is assumed that rents post-renovation will be significantly higher.  But for all the front page stories published about the displaced tenants - their rallies for rent control, candle-lit vigils held in their honor and tearful pleas for affordable housing - very little, if anything, has been reported about the previous living conditions at 910 Clinton, or why the owner felt he had to evacuate and renovate it in the first place. We were able to get into contact with someone involved with the new ownership group (who requested to remain anonymous), and found that once you start peeling back the layers, there is much more to the story. According to our source, a majority of the units exceeded the maximum allowable tenants, with many even tripling the maximum allowable tenants.  910 Clinton Street also had routine visits from local law enforcement due to suspected drug and alcohol abuse, suspected drug dealing, noise complaints and a suspected gang presence.  Many neighboring apartment owners have expressed discontent with the previous owner’s “hands-off” approach to management, and thanked the new ownership for taking control.  Local Law Enforcement officials have also reached out to new ownership with positive things to say about re-tenanting 910 Clinton Street due to the constant issues at the property over the years. Does knowing this discredit the plight of the displaced tenants?  Of course not, but it shows that there is more to know than what has been reported. It is evident that the standard of living at 910 Clinton was far below acceptable, and it is well within the owner’s right to correct that. Who should ultimately be held responsible for providing affordable housing to lower income families?  Is it private property owners? Local government?  This will be discussed further in our next newsletter, but for now we’d like to hear what you think.  I've created a poll on my Facebook page where you can chime in.