Bay Area Real Estate: High-End Hot Spots for Property Investment


November 1, 2018

With a strong economic outlook and proximity to Silicon Valley, the Bay Area is hot for real estate investment. The booming tech industry has brought talent and prosperity to the area.

In effect, top tech companies and start-up headquarters based in the city have flooded the rental market with high-paid workers. As a result, the workforce continues to grow, with a demand for housing and an increase in luxury developments. Therefore it is a great time to invest in Bay Area real estate for rentals catering to business professionals. Presently rental markets are thriving, with vacancy rates at less than 5% in 75% of the United States largest cities.

When investing in Bay Area real estate the focus should be on location and amenities. Prospective tenants in the Bay Area are looking for lifestyle-friendly neighborhood amenities and walkability. In addition, close proximity to public transport is valued. Equally important are lighting, decor, and home amenities, such as sought-after garage spaces, parking and washer/dryer facilities.

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As the most expensive rental city in the USA, Bay Area real estate offers extreme profits on buy-to-let property investment. Home prices and rental incomes are projected to increase by 4% this year. Most noteworthy, real estate is priced ultra-high across all Bay Areas. To distinguish this, we have rounded up a selection of diverse neighborhoods and real estate hot spots. We highlight the features that make them unique living experiences and investment opportunities.

 

Mission Bay

Area: Mission Bay is an up-and-coming contemporary neighborhood for Bay Area real estate. Biotech companies and Research Headquarters make up the local business community. Wide boulevards offer good walkability, with easy access to public light rail lines.

Property: There has been an influx of luxury waterfront apartment complexes and regeneration of old buildings. As a result, industrial property such as warehouses and Cannery Lofts have been redeveloped into high-end housing.

Local characteristic: The San Francisco Bay Trail, a bicycle and pedestrian trail.

Median price per square foot: $1,283

 

Telegraph Hill

Area: One of the city's oldest neighborhoods, it is home to the largest concentration of pre-1870 buildings in San Francisco. As a result of being part of the seven hills of SF, the area offers great vistas. Due to the tropical landscaping, local wild parrots can be spotted. Furthermore, the area is walkable and bikeable, with good access to public transport.

Property: Italianate homes and Carpenter Gothic houses sit in contrast with the new high-end condo developments in the area.

Local characteristic: Coit Tower, known as a classic San Francisco structure offering striking Bay views.

Median price per square foot: $1,136

 

Pacific Heights

Area: A quiet, sought-after neighborhood with affluent residents. Consequently, many Foreign Consulates are based in the area. It borders the local Marina, full of top restaurants, bars, and designer boutiques. For transport, the area is connected by public buses. However many residents opt to drive owing to ample parking facilities.

Property: Premium luxury housing and large properties with Victorian, Edwardian and Misson Revival characteristics. The location offers great views of Golden Gate Bridge and the Bay Area, whilst also being home to some of the most expensive houses in the world. As a result, a two-block area of the neighborhood is known as ‘Billionaires Row’.

Local characteristic: Lyon Street steps outdoor workout area with view Bay views.

Median price per square foot: $1,315

 

Financial District

Area: As the center of San Francisco’s business community it is home to many corporate headquarters and co-working spaces. Additionally, retailers also have flagship units in the area, such as Amazon’s recently opened cashless store. Due to being a bustling area, there are extensive public transport amenities; Metro, buses, cable cars, and the F-Line streetcar.

Property: Notably, the buildings are Manhattan-like with expansive 360 views. As a result, condominiums, condos, and townhomes include 10-foot ceilings, floor-to-ceiling windows, and exposed brick walls.

Local characteristic: The Historic Jackson Square area known for vintage architecture, art galleries, and antique shops.

Median price per square foot: $1,211

 

Fremont

Area: An affluent area for Bay Area real estate investment, due to bordering Sillcione Valley it attracts tech industry workers. Hence, automotive plant Tesla has its factory based in Fremont. In contrast to being a center for business, the area features many public parks and nature spots such as Central Park and Lake Elizabeth. Furthermore, the area is bikable and well-connected public buses.

Property:  Fremont is the second most populated Bay Area with over 200,000 residents. They live in a mixture of properties, from traditional townhouses and luxury residential estate homes to modern condo developments with skyline views.

Local characteristic: Mission Peak Regional Preserve, which is a public park and hiking area.

Median price per square foot: $720

 

SoMa

Area: Another up-and-coming, fast-growing urban city for Bay Area real estate investment. Presently, creative companies in the fields of graphic arts, design, film, and multimedia make up the local business community. Due to being a tech-hub, many residents are part of the start-up culture. As the area has wide streets, is walkable for commuters, and also offers public transportation by bus, train, light rail or BART

Property: SoMa has an urban feel and industrial buildings, offering a mixture of newly converted lofts and luxury serviced condos.

Local characteristic: Mixed-zoning is noteworthy. This allows several residences, offices, top restaurants, and nightclubs to be located together within a two-block stretch.

Median price per square foot: $1,149

 

Overview

The Bay Area is a premier real estate market. As a result, residential real estate value hit an astonishing $1.3 trillion in 2018 and prices are soaring across all municipalities. For that reason, tech-giants such as Facebook are not only expanding business operations but also investing in the property markets. Because there is a high-demand for vacant rental properties there are high rental income opportunities. Given these points, investors can gain a competitive advantage by being well-informed in the Bay Area municipalities hot for property investments.

red and yellow cable car on an empty road in san francisco with a blue sky and trees in the background

Blueground is a real estate tech company that currently lets properties in the top Bay Areas of San Francisco. If you own a Bay Area property and are looking to rent to high-quality tenants for medium to long-term stays, we can assist you in receiving a passive income.


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