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Old 03-27-2015, 02:37 AM
 
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Homeownership rates in CA, and particularly the Bay Area, are very low relative to the rest of the country. The vast majority of people rent, which is also absurdly expensive, but if you're a family unit with kids and need 3+ bedrooms, it takes A LOT of income to afford the $300-800K down payment for a fairly average suburban home somewhere that can supply the space you need, AND you still need to send your kids to school and afford the other things for your family.

THIS is the battle the Bay Area faces - companies at this point in time are willing to cut it close and pay the [relatively] appropriate salaries to their employees so their employees can live at least modestly, because there is hardly a greater concentration of human intelligence and productivity than in the Bay Area, so it's worth that much more to these companies to shell out that money to be there.

But, I think it's still cutting it close. Some companies find it's not worth it. Certainly a lot of people find it not to be worth it, however, the people that do really recognize how being there can advance their career and promote aspects of their life they cannot find in a lot of other places (particularly access to nature/outdoors and of course the cultural enrichment and freeness/openness of the area).

What all this means is that despite the greater "wealth" in the area, a $1M home is not luxury, and it is moreso a privelege to be a homeowner in CA/Bay Area than a given or a standard. I'm pretty sure not anywhere in the entire Bay Area is a $1M home "luxury" by any means. $2-3M is when you cross into the luxury threshold in this region, in my opinion. And of course there are a TON of $10M+ homes. Often not as "lavish" or concentrated or perhaps even as numerous as in South FL, but you can find $10M+ homes in nearly every major municipality in the Bay Area. Those are the real luxury homes - the ones that compare to your average Buckhead mansion or fancy NYC condo or Malibu, Pasadena, Hollywood Hills, or Beverly Hills pad.
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Old 03-27-2015, 06:50 AM
 
Location: Washington State
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Interesting list and Manhattan dwarfs all others with Hamptons second. What do you attribute to the vast number preferring Manhattan and The Hamptons? Is it access to the money on Wall Street?

I was a little surprised Naples has more than Palm Springs.
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Old 03-27-2015, 08:48 AM
 
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Originally Posted by Tall Traveler View Post
Interesting list and Manhattan dwarfs all others with Hamptons second. What do you attribute to the vast number preferring Manhattan and The Hamptons? Is it access to the money on Wall Street?
Probably because there's more wealth in the NYC area than anywhere else on the planet. It would be pretty odd if NYC weren't #1, by a longshot, on such a list.
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Old 03-27-2015, 12:47 PM
 
Location: Dallas
282 posts, read 257,167 times
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Quote:
Originally Posted by Tall Traveler View Post
Interesting list and Manhattan dwarfs all others with Hamptons second. What do you attribute to the vast number preferring Manhattan and The Hamptons? Is it access to the money on Wall Street?

I was a little surprised Naples has more than Palm Springs.
NYC has by far the greatest # of wealthy people on the planet. Plus there is the global prestige of NYC, which pushes it off of the charts. A lot of these sales are driven by foreigners and NYC is seen as the capital and the most desirable city in America. No to mention safe, since it's the center of our markets and global commerce.

I don't think there is anywhere that in the U.S. attracts people like these, like NYC does:

Are Dasha Zhukova and Roman Abramovich Moving to New York? – Jewish Business News
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Old 03-27-2015, 03:11 PM
 
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Originally Posted by afonega1 View Post
I understand that but if the average home price and the average incomes are much higher,more than likely the ultra luxury market will also be high.

SF houses at one million are luxury. Wealth is just on another scale than most cities,not that one million is not luxury.Even In California,ine million is STILL luxury even if it is more common there.
In what world are you living? "Luxury" (esp. high end luxury) in SF (for a single family home, not a condo) start well above 1 million. You're probably looking at 4 million and above for what you'd get for 500,000 to 1 million in other areas of the country (including Miami).

An average run-of-the-mill house is around 1 million in SF these days. What most middle class Americans classify as desirable/high end (McMansion stuff, or something with more than 3-4 bedrooms) is going to cost you well over a million in SF.
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Old 03-27-2015, 03:17 PM
 
Location: Atlanta ,GA
9,086 posts, read 12,861,080 times
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Originally Posted by HockeyMac18 View Post
In what world are you living? "Luxury" (esp. high end luxury) in SF (for a single family home, not a condo) start well above 1 million. You're probably looking at 4 million and above for what you'd get for 500,000 to 1 million in other areas of the country (including Miami).

An average run-of-the-mill house is around 1 million in SF these days. What most middle class Americans classify as desirable/high end (McMansion stuff, or something with more than 3-4 bedrooms) is going to cost you well over a million in SF.
I stand corrected.However I live in the real world.SF is NOT the real world by any means
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Old 03-27-2015, 04:58 PM
 
9,419 posts, read 4,314,938 times
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Originally Posted by afonega1 View Post
I stand corrected.However I live in the real world.SF is NOT the real world by any means
Haha, it is not. I'm definitely not proud about this aspect of SF...

I only highlighted your post because you specified SF, where real estate is incredibly out-of-whack. I wasn't sure if you were aware with how drastically out-of-whack it is.
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Old 03-27-2015, 05:13 PM
 
Location: Atlanta ,GA
9,086 posts, read 12,861,080 times
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Originally Posted by HockeyMac18 View Post
Haha, it is not. I'm definitely not proud about this aspect of SF...

I only highlighted your post because you specified SF, where real estate is incredibly out-of-whack. I wasn't sure if you were aware with how drastically out-of-whack it is.
well i just saw that the average home price hit 1million recently.I was think it was still around $750-$800,000 from not to long ago.

This is just insane!
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Old 03-27-2015, 05:56 PM
 
Location: SF Bay Area
15,404 posts, read 24,386,201 times
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There is nothing "out-of-whack" about SF real estate.

Ignore the fact that is probably in one of the coldest, windiest, foggiest areas of SF, but if this doesn't scream "luxury" I don't know what does:

This San Francisco home 'in a deteriorative state' just sold for $1.2 million - SFGate

Those 4 days of the year where it will be sunny and above 70 degrees there, you will feel fortunate to have paid $1.2 million for that house.
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Old 03-27-2015, 06:53 PM
 
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^^^For $1.2M it was either THAT, at least an actual house, or a little 1/1+/2 BR in a building that is built more like a B-Class apartment building with an A-Class clientele. Or a studio that's basically a room with granite countertops and a whopping 500 sf of space in a luxury building like Millennium (not sure there are studios in the Millennium, but there are buildings that have "luxury studios" for SALE, LOL).

Basically, $1M gets a person jack s**t in SF, though, people are lining up to pay that amount of money for ANYTHING in the city. I bet that little Outer Sunset shack was listed at $700K and it was actually BID UP to $1.2M. That's how it works for anything less than $3M in the entire Bay Area. $3M is when you cross that threshold.
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