Houses Near Apple Park Met With Increased Tourism and Rising Real Estate Values

[MacRumors]

Construction progress surrounding Apple Park has been well documented over the past few years, with monthly drone videos providing anyone interested with clear glimpses into Apple's spacious new campus. Less discussed have been the neighborhoods surrounding Apple Park, including how they have been affected by Apple's construction on a campus that measures 2.8 million square feet, spans 176 acres, and will eventually house around 12,000 employees.

A new report by The New York Times this week has focused on the positive and negative outcomes following Apple's announcement of its major new site, which officially began construction in 2013. In the town of Sunnyvale, which sits across the street from Apple Park, as many as 95 development projects have entered planning stages in recent years, while local businesses in Cupertino have pivoted to meet the needs of Apple employees, including a Residence Inn opening in September that will be stocked with Macs for guests.

Sunnyvale residents, whose home sits across from Apple Park via The New York Times​

Eventually, onlookers won't be able to see Apple Park's circular "spaceship" building from nearby streets (thanks to Apple's sourcing of 9,000 trees coming to Apple Park as the year progresses). Until then, the campus is attracting tourists to come out and take pictures and fly drones over the site. Some who live nearby welcome to boom to businesses and tourism, even allowing tourists to stand outside on their driveways as they pilot drones over Apple Park.

Onlookers snap pictures of the spaceship from the streets. TV helicopters circle above. Amateur photographers ask residents if they can stand on driveways to operate their drones, hoping to get a closer look at Apple Park.

"I just say, 'Hey, go ahead,'" said Ron Nielsen, who lives in Birdland, a Sunnyvale neighborhood across the street from the spaceship. "Why not?"

Residents of nearby neighborhood Birdland have been more critical of Apple's construction, complaining about loud noises early in the morning, unpredictable road closures, unsightly barriers, and construction potholes that have resulted in punctured tires. In response, Apple has tried to appease frustrated residents, going so far as to send carwash certificates to a woman who called the company about her vehicle getting covered in construction dust, and offering to pay for a solution to bottlenecked traffic.

Homestead Road, the thoroughfare that separates Apple Park from Birdland, became its own subject of debate. Cupertino officials wanted to construct a tree-lined median to calm traffic. Apple offered to cover the costs.

But homeowners objected. Residents complained that the island would eliminate one lane, backing up the heavy traffic even more. When 20 or so neighbors approached a Sunnyvale town meeting in solidarity, the city ended up siding with the residents.

Apple hosted over 110 community gatherings when Apple Park was in the design phase, intended to get feedback from residents who would be living near the campus. After the meetings, Apple sent out community mailers five times to around 26,000 households in the area. Apple vice president of real estate and development, Dan Whisenhunt, said that the company continues to respond to community concerns as best it can, "and if the issue is serious enough, I will personally visit to see what is going on."

With all of the increased traffic of businesses, Apple employees, and interested civilians, the value of property in the neighborhoods surrounding Apple Park has also increased. Local real estate agents told The New York Times that in the wake of Apple's plans for the campus being released as far back as 2011, "prices in the area really started to rise." In 2011, a three-bedroom, two-bathroom, 1,400 square-foot house was priced at $750,000, and has since doubled in price.

On average, prices for local homes have increased by 15 to 20 percent each year since 2011, and those bidding on homes in the area offer 20 to 25 percent over the asking price in order to secure real estate.

Birdland is already drawing Apple employees, replacing homeowners who have cashed out to move to quieter regions. Those who remain are realizing that life will not be the same when all 12,000 of the Apple workers go in and come out on a daily basis. People in the neighborhood dread the increased traffic and expect workers to park in front of their homes since there will be fewer available spaces in the company garage.

Apple's answers to concerned residents will continue, Mr. Whisenhunt said. "When you tell people what is upcoming, some of the anxiety they have calms down a lot," he said. And yet, he acknowledged, "you don't make everyone happy."

Although a small number of employees have already moved into Apple Park, construction is expected to continue into the second half of 2017, with buildings like the Steve Jobs Theater predicted to open sometime in the fall. The latest drone videos have captured shots of the lit-up Steve Jobs Theater and historic Glendenning Barn.

Article Link: Houses Near Apple Park Met With Increased Tourism and Rising Real Estate Values

 

[geoff5093]

$750k for a 3 bedroom house before it doubled in value? Holy crap.

 

[Sunny1990]

Apple Park. I like it. I'm hoping iPhone 8 announcement will be the first event they hold there.

 

[4ubrey]

1400 sq feet for $1.5M?

Just sell it, move somewhere reasonable and live like a boss.

 

[newyorksole]

Can't wait for it to be finished and open. Apple has opened up some great locations this year. Both retail and corporate.

 

[DipDog3]

Profit from doing nothing and then complain about it.
It's the American Way!

 

[RightMACatU]

Property taxes should follow in the same direction

 

[BornAgainMac]

And there was a woman that wanted free Wi-Fi when Steve presented the proposal.

 

[5105973]

I really feel for those residents. There are limits to what I'll post about in a public forum even under a screen name. Suffice it to say, I empathize for reasons I'll keep to myself. I am just glad that those who want to leave may get a chance to profit and move on to better things. But few people would want to uproot themselves from their homes due to conditions essentially forcing them to. Some might have fond memories attached and sentimental reasons for wanting to stay. At least Apple has tried to be considerate, which is more than I can say for some new neighbors who develop land in an established neighborhood.

 

[JesperA]

Property taxes should follow in the same direction

Yeah, i remember years and years ago, people who lived in SV saw a huge increase in property tax thanks to the SV became a cultural phenomenon, if i remember correctly some home owners where forced out of their homes and had to live in camper vans instead.

If i would live there i would sell my property in a heart beat but i feel sorry for those who want to live there but now are forced out of their own homes

 

[nfl46]

I'll definitely to selling that house and taking the money. 750k in 2011, 1.5 million now? Wow. Sell ASAP!

 

[ArtOfWarfare]

And I thought my house of a similar size increasing in value from $250K to $300K in ~18 months was nuts.

 

[B4U]

Just drove by there last month and the traffic was already horrible.
Why would someone want to live there is just beyond my understanding.

 

[manu chao]

Apple Park. I like it. I'm hoping iPhone 8 announcement will be the first event they hold there.

• 2016: iPhone 7 announcement: Bill Graham Civic Auditorium, holding ~7000 people in normal configuration, ~3000 in Apple's configuration
• 2015: iPhone 6s announcement: Bill Graham Civic Auditorium, holding ~7000 people in normal configuration, ~3000 in Apple's configuration
• 2014: iPhone 6: Flint Center for Performing Arts, holding ~2400 people
• 2013: iPhone 5s: Apple's Town Hall, holding ~300 people
• 2012: iPhone 5: Yerba Buena Center for the Arts, holding ~750 people
• 2011: iPhone 4s: Apple's Town Hall, holding ~300 people

The Steve Jobs' theatre in Apple Park holds about 1000 people, its general design was unveiled in summer 2011 (with the rest of the new campus), at a time when Apple probably thought that 1000 seats would be enough for its events (outside of WWDC).

 

[tzm41]

Wow almost catching up with property price of Beijing or Shanghai... This is going insane.

 

[miknos]

Property taxes should follow in the same direction

And it doesn't care if your house is "worth double". If you don't sell it, there's no profit.

 

[CrystalQuest76]

I'll definitely to selling that house and taking the money. 750k in 2011, 1.5 million now? Wow. Sell ASAP!

For many reasons those residents may not be able to sell. In the mean time they have to pay higher taxes on a home that is only worth what they paid for it; until it is sold.

 

[Weaselboy]

In the mean time they have to pay higher taxes on a home that is only worth what they paid for it; until it is sold.

Not exactly. California limits property tax to one percent of original value (when you bought it), with a max bump of two percent a year. So even if your house value went from 200,000 to a million, your property tax would only go up two percent a year.

 

[DogHouseDub]

Not exactly. California limits property tax to one percent of original value (when you bought it), with a max bump of two percent a year. So even if your house value went from 200,000 to a million, your property tax would only go up two percent a year.

This^^^ - nobody is being driven from their home by property tax increases. The property value can only be adjusted when it is sold.

And yes, $1.5M for 1500 sqft is about right for the area.

 

[ksnell]

Nothing lasts forever. At least their property values will be driven up rather than down by it all.

 

[Tycho24]

And I thought my house of a similar size increasing in value from $250K to $300K in ~18 months was nuts.

A 20% rise in value of an asset over 18 months is mildly pleasant.. but FAR from “nuts”.
After all.... Apple stock, over the last 18 months, appreciated 37%, and this wasn’t even really considered that banner of a last four quarters.

 

[sachinwalia]

I live about 2 miles away from this location and I could tell you that within that location there is no live-able single family home available for $1.5m. When you tell real estate agent that your budget is $1.5m they tell you to up it to $1.7m if you want a house that you can move in. Even then you are dealing with multiple offers where you could be outbid by at least $200k (so $2m is a realistic number for ready to move in house). The real estate is extremely expensive within that location and only way it is moving is up. I have seen my condo (1330 sqft) that we bought in 2012 for $470K to be in vicinity of $1m right now.

 

[hotgril]

Yeah, i remember years and years ago, people who lived in SV saw a huge increase in property tax thanks to the SV became a cultural phenomenon, if i remember correctly some home owners where forced out of their homes and had to live in camper vans instead.

If i would live there i would sell my property in a heart beat but i feel sorry for those who want to live there but now are forced out of their own homes

There are limits on how quickly property tax can increase. IDK what they are there, but they're very low here, not enough to force anyone out. Edit: Oh, someone already posted a better answer.

It creates some interesting conditions. Where I live, property used to be very cheap and is now some of the most expensive in the country, and those who bought early pay almost no tax.
[doublepost=1499278818][/doublepost]

For many reasons those residents may not be able to sell. In the mean time they have to pay higher taxes on a home that is only worth what they paid for it; until it is sold.

Yeah, I don't understand the property tax. You're taxed when you sell the home anyway. Property tax ends up weirdly benefitting certain people directly at the expense of others. And if someone develops on empty land, a tax assessor has to judge its value, which obviously creates all kinds of injustices and other problems. There have been cases of bribery in Los Angeles.
[doublepost=1499279860][/doublepost]

And I thought my house of a similar size increasing in value from $250K to $300K in ~18 months was nuts.

Most things in the US have gone up in value lately. Someone mentioned AAPL above, but looking at a more stable stock, an investment in the S&P500 would have increased by more than that in the past 18 months. But, of course, owning a house also means you get to live in it, and that's worth a lot more than the S&P500 dividends

 

[IJ Reilly]

This^^^ - nobody is being driven from their home by property tax increases. The property value can only be adjusted when it is sold.

And yes, $1.5M for 1500 sqft is about right for the area.

Pretty much, though you can also be assessed for property improvements at their current value.
[doublepost=1499281484][/doublepost]

And it doesn't care if your house is "worth double". If you don't sell it, there's no profit.

The problem with trying to profit from the ownership of your own home is, you still have to live somewhere, so that huge "profit" from selling your home is likely going right back into another one. If you are at or beyond retirement age you could choose to become an equity refugee and move to somewhere where the real estate is cheaper. But if you're working, or have other reasons for staying in an area, you aren't going to be profiting. The other aspect of this calculation in California is the perverse system of real estate taxation, whereby you could very easily end up paying far more in property taxes for moving, even with downsizing.

 

[WRChris]

1.5 million? I'd laugh all the way to the bank. Idc what anyone else can afford, but who the hell would pay that much for shelter?