What's Driving Wealth in the Bay Area? [sponsored]
The Bay Area is home to the second highest concentration of billionaires in the world, as domestic wealth has driven prime sub-markets in San Francisco and the Mid-Peninsula to new highs. To understand how the Bay Area has become one of the strongest performers on the global stage, the recently released San Francisco Bay Area Spotlight Report from McGuire Real Estate and Savills World Research, takes an in-depth look at what’s driving all this wealth in the Bay Area.
The San Francisco and San Jose metro areas have a combined GDP of $665 billion and are home to four of the world’s top 10 most valuable companies by market cap, namely Alphabet (Google), Apple, Facebook and Wells Fargo. If the Bay Area were its own country, it would have an economy larger than Switzerland.
The result of such rapid job growth in high-value industries like technology, healthcare, and professional services is the creation of wealth and housing demand from new employees that further fuels the Bay Area housing market. Between 2000 (the ‘dot com’ peak) and 2015 Silicon Valley added 36,800 jobs in this sector, an increase of 31 percent. Meanwhile San Francisco added 81,500 jobs in the sector over the same period, a 77 percent increase.
Looking toward the future, the report anticipates the urbanization of suburbs and a rise in the popularity of small towns and cities in outlying but accessible districts is anticipated. Authentic places with heritage and local character have been increasingly popular with ‘priced out’ millennials across the globe. The trend is still urban but the next genesis of real estate in the Bay Area is likely to be increasingly ‘small urban’.
For a complete analysis, download the full San Francisco Bay Area Spotlight Report. Each section of the report can also be viewed on McGuire's Blog.
Listing information for included property photos:
2517 Mar East Street, Tiburon, CA 94920
Offered at $3,495,000. Presented by Lotte Morre and Sarah Kowalczyk, McGuire Real Estate.