Last week Redwood City made Forbes' list of the fastest growing cities in the country, which might not come as much of a surprise to residents who have been witnessing the growth firsthand. Development is taking place at an alarming rate in the city that not long ago was affectionately referred to as "Deadwood City". And while many are happy to see the city's downtown area flourishing, some residents are concerned with the unintended consequences that go along with rapid growth.
Deep-pocketed tech workers are becoming increasingly attracted to RWC as a place to settle down, and as a consequence competition for housing is becoming fierce. This coupled with minimal inventory is driving home prices through the roof, causing what many people are calling an affordability crisis. The average sales price for a home in Redwood City broke a million dollars last year, and in January 2015 alone the average sales price was $1,232,750!
Rental prices are equally weighty. According to Zillow's rent price index, in December 2014 the average price for a 1 bedroom rental in Redwood City was a staggering $2,640. And the new residential developments popping up across the city are offering little relief in the way of affordable housing. At The Lane on the Boulevard - a 141 unit apartment community that celebrated its completion at the end of 2014 - you'll find 512 square foot studios for a whopping $2,600/month. The new luxury apartments at 201 Marshall Street offer more of the same, with 500 sqft studios starting at around 2,400/month.
The influx of money into Redwood City is transforming more than just the local real estate climate. New trendy shops, cafes, and restaurants are popping up all over the place in the downtown area, most of which serve to accommodate the city's changing demographic makeup. Pricey eateries like Quinta Sol, Sakura, and la Tartine are becoming more the norm while mom and pop shops are getting pushed aside.
The Living Room, a cozy couch-filled bar on Broadway Street, just had its last day of service this past Saturday, and in its place will be an upscale whiskey bar - indicative of a growing trend in the downtown area.
These changes aren't necessarily bad; and in fact, many residents are thrilled about the departure from the ho-hum downtown of the past. Still, with change occurring as quickly as it is, some residents are bound to feel a bit overwhelmed.
Click here for an interesting KQED article that outlines the polarizing effect that RWC's rapid development has had on its residents.
Perhaps its too early to pass judgment on the rapid growth in RWC. As city manager Bill Ekern put it: “You won’t know how all the pieces fit together till you get enough of the pieces in place. That’s where we are now, we’re building the first of the pieces. We’ll get to the next phase and we’ll say, ‘OK.’ Cause the economy’s going to slow enough that we all get to take a breath. We’ll go, ‘OK, we built this. Now what happens? We like this. We don’t like that. Now we can fix it going forward."
One thing is for sure - those who bought property in the area before the tech boom are happy with their investment. Redwood City homeowners are enjoying the increased equity that comes with soaring home prices, and sellers are reveling.
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