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

[RobinInOR]

Prices started doing that in the late 70s. A condo I had with my parents in Sunnyvale went up $30K in 3 months. Sold that and bought another in Cupertino. Sold that in 1980, and now its value is 1M. And that's for a tiny 900 sq ft 2 bedroom one. Guess I should have kept it!

We bought another house, and when we moved to Oregon in 82 we sold it - 1900 sqft Cupertino house and bought 3200 sqft house on 10 acres for the same price.

Prices in the Bay Area are outrageous, we could never move back (not that we want to, but still.....)

 

[SoyCapitanSoyCapitan]

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

This is how the top 10% make the bottom 50% scrape by.

 

[commodorepet]

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?

Why - Because the alternatives are almost as expensive.
I was just back there visiting friends over the weekend.
Lived in a 3 bedroom Town House behind the birdland estate until 2012 (walking distance to Apple Park). Rent was 2100. When I moved out, it jumped to 2700. Rent right now is 3300 for that same unit, and people are saying that it's good value at that. Anything in that complex or nearby that is on the market now is going to be closer to 4000/month.

What's 4000 now is probably going to be 5000 next year.
The Mortgage on 1.5M is way more than that though.

Harsh reality is if you already own a house there, you can't sell it and stay in the area, you can only sell and move far away. If you don't own a house, rent is going to eat you alive. Double (good) Income or house sharing is a necessity.

 

[IJ Reilly]

Harsh reality is if you already own a house there, you can't sell it and stay in the area, you can only sell and move far away. If you don't own a house, rent is going to eat you alive. Double (good) Income or house sharing is a necessity.

Seems to me, people who already own in the area are just about the only ones who can sell and not move away. They've been riding the local equity elevator. Moving in from outside the area, now that's another matter.

Anyhow, all of this bring back one of my original criticisms of what is now called (ironically) Apple Park. From a city planning point of view, it's pretty much a total nightmare.

 

[fmalloy]

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

Yep. My house did the same and I live in Santa Clara, which is more of a working-class city and doesn't have the "prestige" of Cupertino or Palo Alto. Thousands are flooding the Bay Area for high-paid Apple/Google/Facebook jobs, and there are not nearly enough single-family homes or condos. Large apartment blocs are going up like Starbucks. It's crazy here.
[doublepost=1499295476][/doublepost]

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?

You'd be incredibly surprised at the fixer-uppers that go for $1M+. And, most buyers either gut the inside to remodel or tear it down and build from scratch. There are a lot of Apple and Google VPs or regular employees who hit the options shares lottery who can pay that kind of coin, and they do.

For those of us who already live here - sure, we can sell, but we still have to work here. Significantly cheaper housing means a two-hour commute.
[doublepost=1499296727][/doublepost]Silicon Valley has become a huge one-industry-dependent area. Eventually there is going to be a tech downturn. the iPhone will lose its sky-rocketing growth, folks will wonder why they wasted so much time on Facebook, VCs will get smart and realize another stupid IM app isn't worth $20B, and perhaps advertisers will be disinterested in funneling so much money into Google. Perhaps VR and autonomous vehicles will carry the industry forward...maybe not. This kind of growth can't last forever.

Rochester was dependent on Kodak, Detroit and Flint on the auto industry, and of course there's the Rust Belt.

Techies along with city councils here have this arrogant belief that tech will ride the wave forever.

 

[cymerc]

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

Existing residents are actually grandfathered in to their super old property tax rates from when they bought their houses. This is actually part of why housing is so expensive here. Nobody sells their house since they'd lose out on the amazing tax rate they have (which does not transfer to the new owner and which they cannot take with them to their new home in the area.)

 

[fmalloy]

Existing residents are actually grandfathered in to their super old property tax rates from when they bought their houses. This is actually part of why housing is so expensive here. Nobody sells their house since they'd lose out on the amazing tax rate they have (which does not transfer to the new owner and which they cannot take with them to their new home in the area.)

Yep, that's Prop 13. But you still get reassessed if you do construction or remodeling, which I would guess is why so many older homes look so dumpy, because the owners are afraid to remodel.

Lots of senior folks who move out for their retirement just transfer the house (not selling) to their kids.
[doublepost=1499298544][/doublepost]

Yep, that's Prop 13. But you still get reassessed if you do construction or remodeling, which I would guess is why so many older homes look so dumpy, because the owners are afraid to remodel.

Lots of senior folks who move out for their retirement just transfer the house (not selling) to their kids.

And don't get me started on Mello-Roos.

One way or the other, California is going to get their money, rest assured. After all, we need all that money to help care for our dreamers and maintain our sanctuary status, thank you very much Governor Moonbeam.

 

[mdelvecchio]

Yep. My house did the same and I live in Santa Clara, which is more of a working-class city and doesn't have the "prestige" of Cupertino or Palo Alto. Thousands are flooding the Bay Area for high-paid Apple/Google/Facebook jobs, and there are not nearly enough single-family homes or condos. Large apartment blocs are going up like Starbucks. It's crazy here.
[doublepost=1499295476][/doublepost]
You'd be incredibly surprised at the fixer-uppers that go for $1M+. And, most buyers either gut the inside to remodel or tear it down and build from scratch. There are a lot of Apple and Google VPs or regular employees who hit the options shares lottery who can pay that kind of coin, and they do.

For those of us who already live here - sure, we can sell, but we still have to work here. Significantly cheaper housing means a two-hour commute.
[doublepost=1499296727][/doublepost]Silicon Valley has become a huge one-industry-dependent area. Eventually there is going to be a tech downturn. the iPhone will lose its sky-rocketing growth, folks will wonder why they wasted so much time on Facebook, VCs will get smart and realize another stupid IM app isn't worth $20B, and perhaps advertisers will be disinterested in funneling so much money into Google. Perhaps VR and autonomous vehicles will carry the industry forward...maybe not. This kind of growth can't last forever.

Rochester was dependent on Kodak, Detroit and Flint on the auto industry, and of course there's the Rust Belt.

Techies along with city councils here have this arrogant belief that tech will ride the wave forever.

technology has been advancing industry for at least a century and a half. when exactly do you expect it to disappear? and what do you expect city councils to do?

 

[pdaholic]

I'm also feeling the tax burden of having a home less than 2 miles from this monstrosity. We just got reassessed for $1.7m, and that sounds great until you get the property tax bill. I have daily thoughts of putting my house up and running away from California. I do love my job and all the amenities of living in the area, but it's crazy to have to put up with the cost of this place.

 

[fmalloy]

technology has been advancing industry for at least a century and a half. when exactly do you expect it to disappear? and what do you expect city councils to do?

So there'll be no such thing as a tech downturn because Apple/Google/Facebook are invincible, right? And sorry, but Apple and Google and Facebook are not all of "technology".

Same thing might have been said in the 90's in the era of Netscape, Yahoo, Webvan, and Pets.com.

City Councils can stop saying "yes" to any and all development that comes from Apple and Google...?

 

[Bart Kela]

I agree with mdelvecchio to a certain extent. I believe there has been a fundamental shift in the importance of high tech on this planet.

No, it's not just things like Facebook, Snapchat, or whatever popular social network of the month it is.

It's easiest to understand when you look at a different industry and how tech affects it.

Ten years ago, my dental x-rays were little cellulose film pieces, chemically developed, thrown up on a lightbox and eventually tucked into a manila folder. Today, everything is computerized. This is not going away. We aren't going back to the days of silver amalgam emulsions.

Example #2: your car. My 10+ year old car probably has 4-5 CPUs, one for the engine management, one for antilock braking, one for vehicle stability. Today's cars have 50+ CPUs.

And how are you going to pay for this? Are you going to whip out a checkbook like you did in 1987?

Sure, there will be ups and downs for the high tech industry and the world economy at large, but it's not like we're going to cut back much on technology. Can you envision a planet of people throwing away their smartphones and going to landlines and cassette-based answering machines? Nope, not going to happen.

At least over the course of my remaining life, the semiconductor industry is here to stay and to continue to make gains in pretty much all facets of our daily lives.

 

[DogHouseDub]

This is how the top 10% make the bottom 50% scrape by.

Top 10% on paper, I suppose. But most of us plunge an excessive percentage of our take-home pay into our rent/mortgage. At the end of the day, we come out with the same amount of disposable income as professionals in any other part of the country. When a 1 bedroom apartment is $3k+ per month, those earning low 6-figure incomes might spend 65% of their net on rent.

 

[Floris]

Sounds logical.

 

[fmalloy]

I agree with mdelvecchio to a certain extent. I believe there has been a fundamental shift in the importance of high tech on this planet.

No, it's not just things like Facebook, Snapchat, or whatever popular social network of the month it is.

It's easiest to understand when you look at a different industry and how tech affects it.

Ten years ago, my dental x-rays were little cellulose film pieces, chemically developed, thrown up on a lightbox and eventually tucked into a manila folder. Today, everything is computerized. This is not going away. We aren't going back to the days of silver amalgam emulsions.

Example #2: your car. My 10+ year old car probably has 4-5 CPUs, one for the engine management, one for antilock braking, one for vehicle stability. Today's cars have 50+ CPUs.

And how are you going to pay for this? Are you going to whip out a checkbook like you did in 1987?

Sure, there will be ups and downs for the high tech industry and the world economy at large, but it's not like we're going to cut back much on technology. Can you envision a planet of people throwing away their smartphones and going to landlines and cassette-based answering machines? Nope, not going to happen.

At least over the course of my remaining life, the semiconductor industry is here to stay and to continue to make gains in pretty much all facets of our daily lives.

Agree, and you've shown how wide technology is. But today, many folks equate "technology" with Apple and Google. These are by far the dominating employers in Silicon Valley. Semiconductor companies like Fairchild, and innovators like HP are all but dead and gone in comparison. The domination by these two companies is huge.

No, smartphones aren't going anywhere, but Wall Street rewards you on *growth*, not merely consistent sales. Everyone's got an iPhone and after a few more revs, people may not be replacing them every 2 years, especially at $1,000 a pop.

Tech is broad. If we had IBM, GE, more biotech, etc. that might help. But right now it's Apple and Google.

What's ironic is this area is all about diversity...except in the dominant employing companies.

 

[IJ Reilly]

I'm also feeling the tax burden of having a home less than 2 miles from this monstrosity. We just got reassessed for $1.7m, and that sounds great until you get the property tax bill. I have daily thoughts of putting my house up and running away from California. I do love my job and all the amenities of living in the area, but it's crazy to have to put up with the cost of this place.

Assuming you were appraised for around $1.65M last year. Also assuming you could not make close to the same money working outside of the Silicon Valley.

 

[pdaholic]

Assuming you were appraised for around $1.65M last year. Also assuming you could not make close to the same money working outside of the Silicon Valley.

Correct on the first statement, incorrect on the latter. I'm not in tech. I came here for the outdoor sports, and I take advantage of it every chance I get. Hard to go anywhere else and get surfing, mountain biking, skiing, and rock climbing all in the same place with so many different cultures. I could leave the area and make just as much money and have a much lower cost of living, at the expense of missing out on all the things I (and my family) enjoy.

I am looking into trying to fight the appraised value of my house. It's not the mortgage that is pissing me off, it's the property taxes.

 

[icehockey77]

Correct on the first statement, incorrect on the latter. I'm not in tech. I came here for the outdoor sports, and I take advantage of it every chance I get. Hard to go anywhere else and get surfing, mountain biking, skiing, and rock climbing all in the same place with so many different cultures. I could leave the area and make just as much money and have a much lower cost of living, at the expense of missing out on all the things I (and my family) enjoy.

I am looking into trying to fight the appraised value of my house. It's not the mortgage that is pissing me off, it's the property taxes.

Philly has tons of blue collar culture, and most of those amenities within an hour's drive, albeit none if it will be as exciting and as beautiful as northern California!

 

[darkknight14]

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).

I think we could see the iPhone event take place here, these events aren't normally open to the public (like WWDC) just press, employees and 'VIPs'. I think it would be a great product announcement to open up the Steve Jobs' theatre.

Obviously this all depends on whether construction of the theatre is complete:

 

[IJ Reilly]

Correct on the first statement, incorrect on the latter. I'm not in tech. I came here for the outdoor sports, and I take advantage of it every chance I get. Hard to go anywhere else and get surfing, mountain biking, skiing, and rock climbing all in the same place with so many different cultures. I could leave the area and make just as much money and have a much lower cost of living, at the expense of missing out on all the things I (and my family) enjoy.

I am looking into trying to fight the appraised value of my house. It's not the mortgage that is pissing me off, it's the property taxes.

Well, you have chosen the most expensive part of California for enjoying these activities, outside of perhaps San Francisco. Lots of places near the California coast wouldn't cost you half as much to own a home. Even Santa Barbara probably would be less expensive.

You can appeal the appraised value of your home, but that only turns out well in markets were the property values are declining. Otherwise it's really tough to prove that your value did not increase by the meager 2% annually allowed under Prop 13 rules. I don't know when you bought, but the price you paid is the basis for the appraisal. The county isn't doing anything in terms of an appraisal but adding that statutory 2% each year, unless you made improvements, in which case were issued a supplemental assessment for them that is piled on top of the base.

 

[hotgril]

Why - Because the alternatives are almost as expensive.
I was just back there visiting friends over the weekend.
Lived in a 3 bedroom Town House behind the birdland estate until 2012 (walking distance to Apple Park). Rent was 2100. When I moved out, it jumped to 2700. Rent right now is 3300 for that same unit, and people are saying that it's good value at that. Anything in that complex or nearby that is on the market now is going to be closer to 4000/month.

What's 4000 now is probably going to be 5000 next year.
The Mortgage on 1.5M is way more than that though.

Harsh reality is if you already own a house there, you can't sell it and stay in the area, you can only sell and move far away. If you don't own a house, rent is going to eat you alive. Double (good) Income or house sharing is a necessity.

All these second-rate houses in really filthy parts of Berkeley cost >$1M. $3000/mo rent for a 2-br, tiny kitchen, small living room apartment is considered a slightly good deal, assuming the apartment is old and ugly but not in the ghetto. It's annoying.

 

[manu chao]

I think we could see the iPhone event take place here, these events aren't normally open to the public (like WWDC) just press, employees and 'VIPs'. I think it would be a great product announcement to open up the Steve Jobs' theatre.

I think Apple would like to hold the iPhone event in the Steve Jobs theatre. But they also would like to invite more than 1000 people. In the end, they have to decide what is more important to them. What gives more buzz, twice as many journalists being at the live event or half as many journalists being at the live event but getting an extra boost from being at Apple Park for the first time + plus non-present journalist having the 'Steve Jobs Theatre' angle as another highlight to include in their reports.

 

[Neil C.]

I've lived in the Birdland neighborhood mentioned in the article for more than 15 years.

There's certainly a mixture of feelings. On the positive side, our property values have gone up a lot in the past few years...though I'm not sure that it's any more than houses in Mountain View, Palo Alto, or Menlo Park. The NY Times lowballed their estimate of what a house in our neighborhood costs, as there's one just a few houses away from me that was listed for $1.59M and sold for $1.9M (1500sq ft) several months ago.

Another positive is that as house prices have gone up, those families that have moved in usually come with well-educated parents and hence the scores at the public schools look better.

Lastly, there's definitely something cool about having the world's most iconic office building within a 5 minute walk.

On the down side, there's the upcoming traffic mess. Also, anecdotally, there are more houses in our neighborhood that have switched from single-family to rentals with multiple tenants. It definitely changes the vibe of the neighborhood. Also, the traffic is going to really, really, really suck.

 

[PinkyMacGodess]

Agree, and you've shown how wide technology is. But today, many folks equate "technology" with Apple and Google. These are by far the dominating employers in Silicon Valley. Semiconductor companies like Fairchild, and innovators like HP are all but dead and gone in comparison. The domination by these two companies is huge.

No, smartphones aren't going anywhere, but Wall Street rewards you on *growth*, not merely consistent sales. Everyone's got an iPhone and after a few more revs, people may not be replacing them every 2 years, especially at $1,000 a pop.

Tech is broad. If we had IBM, GE, more biotech, etc. that might help. But right now it's Apple and Google.

What's ironic is this area is all about diversity...except in the dominant employing companies.

Just wait until 'the big one' and the current administration does nothing to help recover California, or what's left of it. People can whine about 'moonbeams' and 'dreamers', but that's about all that will end up saving this country.

The current political climate is driving smart people away. I guess if it all ends up going to a service industry country, at least there will be jobs?

Most people are underwater on their houses. I wish I had their problem.
[doublepost=1499981646][/doublepost]

On the down side, there's the upcoming traffic mess. Also, anecdotally, there are more houses in our neighborhood that have switched from single-family to rentals with multiple tenants. It definitely changes the vibe of the neighborhood. Also, the traffic is going to really, really, really suck.

Apple could have worked with the city and state and put in their own mass transit system. Like elevated light rail, or something...

 

[omonien]

The property value can only be adjusted when it is sold.

That'd be different from FL then. There we have annual property appraisals, which will adjust your home's value for property tax according to market. Since 2008 (or so) there is a cap though (3%/10% homestead/non-homestead) - until you sell.