It's been another jam-packed week of housing news. Here's what's on our radar...
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The latest
This week, California Gov. Gavin Newsom signed a package of bills aimed at speeding up new construction and providing more funding for affordable housing. The laws would make it easier for developers to build on commercial land, as long as certain conditions are met, which include a percentage of affordable housing and an environmental review process. “This is a moment on a journey to reconcile the original sin of the state of California, and that’s the issue of housing and affordability,” said Newsom. Read the full story here.
A looming FAA deadline to clear a San Jose encampment has a few remaining people refusing to budge. Some of the unhoused and about 60 RVs have moved to an abandoned baseball diamond, dubbed the "field of dreams,” outside of SJC’s flight path. But the field is fast becoming overcrowded, posing a potential fire hazard. Many are worried the city will eventually clear them out again. Robert Handa reports.
Why are houses still so expensive right now? One culprit may be the shift to remote work. CNBC reports that even though the Bay Area has experienced a pandemic exodus, it has also seen remote workers stay in the region, but further away from the office where they could buy larger homes. Federal Reserve Chair Jerome Powell warns that a “difficult correction” is needed before things get better.
So yes, homes remain very expensive. But there are some cities seeing a “cooling” effect – meaning homebuyer demand and competition are down. Believe it or not, most of the top 10 housing markets in the U.S. that are cooling the fastest are on the West Coast, according to a new Redfin report that tracked the data between February and August of this year. And two of them are right here in the Bay Area – San Jose and Oakland. Business and tech reporter Scott Budman explains what’s driving the market cooldown. Plus, you can see the full list of the top 10 markets here.
Listing of the week
Fan of “Stranger Things”? Obsessed with the Upside Down? Well, we might just have the perfect listing for you. The Byers house is up for sale in Georgia. $300,000 for this 3BR, 2BA home built in 1900 and this piece of pop culture could be yours. Winona Ryder not included.
Taking the plunge
Ready for that first starter home? If you’re thinking of buying in the Bay Area, you better pull out that calculator because that first home is going to cost you a pretty penny. New data from Realtor.com gives a glimpse into just how much you need to make a year to land a starter home in the Bay Area’s biggest cities. If you’re in San Jose, for instance, that means earning $245,000 a year for a $6,000 monthly mortgage. Take a look at the sobering stats here.
So, assuming you can afford to buy, how do you decide whether it’s best to buy or rent? It’s the age-old question. Did you know that between 1985 and 2020, the national median rent has risen 149%? Meanwhile, overall income grew just 35%. So how do you make the best financial decision? Here’s some advice from CNBC’s Money Report.
By the numbers
Our NBC Bay Area business and tech reporter Scott Budman is always keeping a close eye on the latest housing stats. Be sure to follow him on Twitter @ScottBudman for more.
Documentary: The Moms of Magnolia Street
A group of working homeless mothers calling themselves Moms 4 Housing illegally occupy a vacant, corporate-owned home in West Oakland. The moms say it’s time to start a movement fighting back against rising homelessness, inequality, and corporate housing speculation in Oakland. With the aid of activists and community members, the moms make the first move in what would become a two-month struggle against a large home-flipping corporation. Watch all 4 episodes streaming now.
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