With median prices above $1 million, few investors are able to acquire assets in the Bay Area
IRVINE, Calif., March 16, 207 – HomeUnion, an online real estate investment management firm, has announced that a slowdown in venture capital funding to San Francisco companies is will have a noticeable impact on the city’s real estate market. While job growth is projected to increase in 2017, annual economic growth in the city is expected to be slower than in past years.
“The luxury market in San Francisco is showing signs of softening,” says Steve Hovland, director of research at HomeUnion. “The influx of foreign buyers propping up the higher end of the market has started to leave the market, although demand for mid- to lower-priced owner occupied and investment homes remains high. With median investment home prices still above the $1-million-market, San Francisco remains out of reach for the average single-family rental (SFR) real estate investor.”
Here are some key takeaways on the San Francisco investment housing market:
- The metro’s year-over-year employment growth is projected at 2.7 percent this year, compared to 1.9 percent growth nationally.
- SFR vacancy in San Francisco is expected to drop by 30 basis points to 3.2 percent.
- Rents for San Francisco SFRs are anticipated to decline to $4,360 per month, down 1.7 percent from 2016.
- Prices for investment homes in San Francisco ended 3Q 2016 at $1,075,000 with over 75 percent of investors choosing to use leverage.
For more information on the state of the U.S. investment housing sector and market conditions in 29 metros nationwide, download the 2017 National Single-Family Rental Research Report.
HomeUnion is an online real estate investment management firm. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in single-family rental (SFR) properties. The company uses a combination of research and proprietary analytics to incorporate data on over 110 million homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves 11 locations. HomeUnion’s role spans the lifecycle of the investment transaction: identifying sound investments, handling all aspects of acquisition, maximizing income, protecting asset value, and selling the asset when the time comes.
Communications Manager, HomeUnion