SF East Bay Investment Property Market
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Credit applies only to Certified and Roofstock Rack Properties with offers accepted after November 13, 2017 and that close by December 31, 2017. Credit will be paid at closing.

San Francisco - East Bay Investment Property Market Overview

The real estate market in San Francisco and the East Bay, the 5-county region which includes SF and extends approximately 60 miles to the east, has been one of the fastest-growing real estate markets in the country with home prices increasing nearly 70% since 20111. While historical growth has been staggering, the region is still experiencing strong fundamentals that are expected to support continued growth in real estate values and rents.

Improving Gross Yields and Strong Market Fundamentals

From a Single-Family Rental (SFR) investment standpoint, one of our favorite data points about this market is that rent growth is expected to keep pace with home price growth, which is a unique factor vs. most other markets. Rents are expected to increase 6% in the next year while home values are expected to increase over 7%2. This results in better gross yields and gives investors pricing power when it comes to rent increases.

Furthermore, when it comes to underlying fundamentals that drive SFR investment returns (job growth, household growth and housing supply), the SF East Bay market continues to be one of the leading economic regions in the country.
  • House price appreciation (HPA) and rent growth: Some of the strongest home price and rent growth forecasts in the nation
  • Affordability: More consumers driven to rent as home prices have rapidly increased
  • Economic tailwinds: Continued market strength as more people move to the region, fueling job and household growth
  • Supply constraints: Limited supply of inventory (new and existing homes) in one of the most densely populated regions in the country
  • Large industry concentration to Silicon Valley / technology jobs
  • Natural disaster risk
  • The East Bay is the home of the the largest regional park district in the United States
  • Denim jeans were invented in San Francisco for the Gold Rush miners who needed tough, comfortable clothing
  • 1 Zillow Data, February 2016
  • 2 John Burns Real Estate Consulting, March 2016

Real Estate Investment Insights

Investment Style: High Appreciation
While each property will differ, this market is more likely to have properties where the value of the property is likely to increase over time.
Inventory:
Home Value *
$864,300
$201,900
National Avg
Home Value Growth (YoY)
6.5%
6.9%
National Avg
Rent **
$3,377
$1,430
National Avg
Source: Financial data from Zillow includes single family, condo & cooperative homes, updated on 08/31/2017
Job Growth (YoY)
1.1%
1.3%
National Avg
Household Growth (YoY)
1.5%
1.0%
National Avg
Estimated Months of Resale Supply
1.2%
4.2%
National Avg
Household Income
$88,300
$59,890
National Avg
Supply, Demand & Affordability data includes single family homes only, updated on 11/13/2017
  • Arrows indicate the directional change since the last update. No arrow indicates that there was no change in the data or no previous data is available.
  • * Home Value: includes all types of housing, including primary resident, condos, investment properties, etc.
  • ** Rent: includes all rental properties, including Single-Family Homes, multi family units, etc.