September 8, 2013

Department of Duh: More House for Your Money in East Bay

And now we present yet another story about people having to move to the East Bay and insisting that it was a great idea.

Families flee S.F. for East Bay with cheaper homes

130907-flight-smithCarolyn Said, San Francisco Chronicle
Updated 9:45 pm, Saturday, September 7, 2013

"Family flight" out of San Francisco is nothing new. But now, real estate prices in the city have risen so steeply – much more so than in the East Bay – that there’s an extra incentive for longtime San Francisco homeowners to cash out their equity and head across the bay seeking more house for less money.

After 20 years in San Francisco, John Perryand Rob Picciotto, along with their children, Ben and Louisa, and three dogs, transplanted themselves to Oakland. "I didn’t think we would ever leave San Francisco, but a convergence of things made us consider moving," said Perry.

In 1998, Perry and Picciotto had stretched to buy their Bernal Heights house and make it work as their family grew. In June it sold for more than triple what they’d paid, a windfall that allowed them to pay cash for a less expensive house in Oakland’s Leona Heights neighborhood in the hills above Mills College.

"We don’t have a mortgage anymore, which is awesome," Perry said. "We doubled our square footage on more than an acre of land, and have phenomenal neighbors. Oakland is so diverse; it’s a whole new world to learn and explore. There’s more space, more mix."

We’ve pointed out many times in the past that the East Bay was not part of the Real Bay Area because it hasn’t benefitted from the same batshit insane price increases found in places West of the Bay. Outmigration serves as a release valve on the price hikes. When SF gets too expensive compared to Oakland or Walnut Creek (two places mentioned as where SF sellers moved to), people will move East because they get more house for the money.

Three things of note from this article:

  1. Moving from SF to Silicon Valley will NOT gain you a damned thing.  The prices have gone up just as much in Googleville.  These bargains are only to be found in the Nickle and Dime or Nine and a Quarter area codes.
  2. The exact same newspaper has a another feature on how the batshit insane SF home prices are leveling off, which isn’t exactly demonstrated by this piece.
  3. San Francisco has fewer residents under 18, by percentage, than any other major city.  This really still remains as a Family Flight From ‘Frisco story. The only difference is more people moving to Montclair instead of Marin.

This is also your Weekend Open Thread. Are you considering moving further afield because trading up where you already live is too expensive?

Comments (4) -- Posted by: madhaus @ 7:06 am

4 Responses to “Department of Duh: More House for Your Money in East Bay”

  1. Alex Says:

    Looks like RE is right again.

  2. We’re all Bozos on this Google Bus [] Says:

    […] They’re also free to play video poker, just like hardworking Senator John McCain.  And like Senators, taking private shuttle buses insulates tech workers from having to deal with ordinary people on public transit. You would be amazed at all the resentment there is toward the Google buses.  Maybe it’s because all those highly-paid tech workers are driving up rents and sales prices, forcing everyone else to move to the East Bay. […]

  3. dollarbin Says:

    I grew up in The City, in a neighborhood where six figure overbids are currently common for single family homes. While San Francisco is a fun-filled wonderland for rich 20- and 30-somethings, it kind of sucked to grow up in. I had a friend that moved to Concord and I was always jealous when we burrowed out of the fog through the Caldecott Tunnel. They lived on a cul-de-sac, they had a pool, they had lawns, and they had an double digit increase in average summer daytime temperature. At my house when we weren’t dodging cars out front on our busy street, we had to slog several blocks to the nearest playgrounds that were vast plains of cement without a blade of grass to be seen.

    Of course, my provincial friend from the burbs grew up to sell shoes at Nordstrom whereas my urban upbringing hardened me into a influential blog commentator.

  4. peanutbutter Says:

    There almost seems to be a sort of campaign to make Oakland into the next hip-n-cool city as if that’s already not happening. I’ve lived in the East bay for 13 years, bought a house here about a year and a half ago and it seems that ever since the latest housing bubble reared its head there have been a TON of people from “the city” moving here either because they can’t afford the rising rents, or they wanna’ buy a house.

    Of course now that they’ve moved here the East Bay is now all cool and stuff.

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