Why isn't San Francisco/Bay Area as desirable as Southern California? (Los Angeles: real estate market, 2014)

[04kL4nD]

Originally Posted by bmw335xi

It's expensive because demand is greater than supply.

I actually don't understand the appeal of SoCal. If you want that kind of lifestyle then live in South Florida because it practically offers everything SoCal does except it's nicer. They have nicer beaches, warm crystal clear blue oceans, new modern buildings, very clean streets, very little homeless, gorgeous houses and condos and it's a fraction of the price with no state income tax. SoCal has more grimy places than nice, yet you still get charged a premium to live in a suburban environment, it doesn't make sense to me. San Francisco also charges a premium, but it is one of the few cities you don't need a car, not to mention, it's one of the most beautiful and unique cities in the country.

I have to disagree. Most of South Florida is much trashier than coastal SoCal. Sure, the beaches are more swimable, but they are also completely built up by ugly highrise condos. Broward County is basically the redneck Riviera and everyone is hooked on pain meds and Miami proper feels like a third world South American country. I enjoy visiting parts of Florida during the winter, but the humidity/weather the rest of the year is unbearable. I could NEVER live in FL. It doesn't hold a candle to places like La Jolla, Malibu, Santa Barbara, Santa Monica, RMD, RPV, etc. Sometimes you really DO get what you pay for, which is why it's so much cheaper to live in Florida than California.

[pch1013]

Originally Posted by 04kL4nD

I enjoy visiting parts of Florida during the winter, but the humidity/weather the rest of the year is unbearable.

Not to mention the cockroaches -- excuse me, "palmetto bugs." Ugh.

[18Montclair]

Originally Posted by mrsantamonica

Bay Area is more expensive because you guys have better jobs at the moment.

At the moment? The Bay Area has been considerably more expensive for decades, not just recently.

Instead of barking up the wrong money tree, you should address the issues that are holding back LA from reaching its potential.

For example, LA is shut out of this completely:

Ivy League Schools, Top 3 Alumni Concentrations

Harvard
1 Boston
2 New York
3 San Francisco

Yale
1 New York
2 San Francisco
3 Boston

Princeton
1 New York
2 San Francisco
3 Washington DC

Brown
1 New York
2 Boston
3 Providence

Columbia
1 New York
2 San Francisco
3 Washington DC

Penn
1 Philadelphia
2 New York
3 Washington DC

Dartmouth
1 Boston
2 New York
3 Washington DC

Cornell
1 New York
2 Ithaca
3 San Francisco

Related to that is data from this very interesting
article that is actually about LA, but reveals
extremely valuable insight on the geography of
where the alumni of our most prestigious schools
live.

Inside LA

[beb0p]

Originally Posted by mrsantamonica

Bay Area is more expensive because you guys have better jobs at the moment. It's expensive because people working there need a place to live and there is regional demand.

I was wondering why it doesn't have global appeal amongst rich people who roam the globe who aren't tied down to one location. This is something completely different. People who don't work in the US who are looking for second homes. And 91% of them in California chose SoCal. Thats a staggering amount.

Even Bay Area's super rich seem to all buy homes in Malibu and Bel Air (the Ellisons, Elon Musk and the rest), but I know so many super rich people here in SoCal and have never heard of anyone here buying a home in Bay Area. More of our super rich are more apt to buy a luxe home in Hawaii or NYC.. not a mansion in the Bay Area.

I'm not sure if you're serious or trolling because it is a BIG LEAP to say that SF doesn't have global appeal because more real estate is sold in S. Ca vs N. Ca. First of all it's wrong. Second you seem to make that comparison with very flawed understanding of the SF Bay Area, the S. CA area, and foreign sentiment.

For starters:

1. S. CA is bigger and has more homes for sale, so naturally it sells more homes to foreign buyers.

2. "I was wondering why it doesn't have global appeal amongst rich people who roam the globe who aren't tied down to one location." This is a ridiculous statement, not based on anything but your imagination.

3. You cited an article about all foreign buyers and then you proceed to say that somehow reflects on how the "super rich" thinks. I could easily cite an article that says the 99% despises the top 1% and then using your logic, wonder why the Super Rich despises the top 1%. It's a logical fallacy.

4. You completely ignored Pebble Beach, Camel, and surrounding areas. Maybe you should google how many S. Ca super rich bought houses there (quite a few).


5. SF Bay Area real estate is expensive. Less bargain than S. Ca. A friend of mine owns properties in Hawaii, NYC, Hong Kong, Macau, Paris, and Malibu; I asked him why nothing in SF, he replied "Too expensive." But he loves San Francisco, more so than S. Ca and NYC. The lesson here is that you can't just make a broad conclusion based on nothing.

.

[NorCal Dude]

Socal is more laid back, with better weather, and more options for the middle class.

A middle class joe can get a home in a nice town like claremont, take an hour train ride to a job in dtla, and live easy.

That is literally impossible to do in sf or near sf. Plus the beaches are way nicer.

Too bad so cal on a whole is turning into a third world country. I can see why the anglo and black americans of the 40's and 50's found it desirable.

[18Montclair]

Furthermore, the proportion of homes in the SF metro area is just too cost prohibitive for too many foreigners.

Homes Listed at $1 million+
San Francisco metro area %43.5%(ranked 1st in the nation)
Los Angeles metro area %18.4%

How Special Are Million-Dollar Listings? | Trulia Trends

[NorCal Dude]

Originally Posted by 18Montclair

Furthermore, the proportion of homes in the SF metro area is just too cost prohibitive for too many foreigners.

Homes Listed at $1 million+
San Francisco metro area %43.5%(ranked 1st in the nation)
Los Angeles metro area %18.4%

How Special Are Million-Dollar Listings? | Trulia Trends

Not really, they just are more apt to jam 3 or 7 families into one house

[18Montclair]

Originally Posted by NorCal Dude

Not really, they just are more apt to jam 3 or 7 families into one house

Actually this is true. Yes.

But those households generally dont enter the market buying million dollar homes.

[mrsantamonica]

Originally Posted by beb0p

5. SF Bay Area real estate is expensive. Less bargain than S. Ca. A friend of mine owns properties in Hawaii, NYC, Hong Kong, Macau, Paris, and Malibu; I asked him why nothing in SF, he replied "Too expensive." But he loves San Francisco, more so than S. Ca and NYC. The lesson here is that you can't just make a broad conclusion based on nothing.

.

You seem delusional. San Francisco is a bargain compared to all of them, and when it comes to number of luxury homes sold it's way in the back. SF has some very expensive home sales, but they're in the anomaly. Most seem around $1-2MM. Like I said..the strong market is from people who work there. No one from outside of the area seems interested in it unless they have ties to tech.

Average sales price Q2 2014

Malibu, CA: $1,170,000
Hong Kong: (can't find data, but it's more expensive)
New York, NY: $1,774,000
San Francisco, CA: $850,000
Paris (Central): $1,389,900 USD

Number of homes sold for above $10MM

SoCal: 56
Bay Area: 6


Not sure why this thread has people all hot and bothered. From gleaning at the stats (which city has the biggest number of foreign buyers) Southern California cruses San Francisco. It seems like SF doesn't have the desirability/lifestyle image of LA/NYC/Miami Beach/Paris/London. Seems no one really cares about it. Again, why do most of those big techies up there buy mansions here but no one down here buys mansions up there?

End of.

[mrsantamonica]

Originally Posted by 18Montclair

Furthermore, the proportion of homes in the SF metro area is just too cost prohibitive for too many foreigners.

Homes Listed at $1 million+
San Francisco metro area %43.5%(ranked 1st in the nation)
Los Angeles metro area %18.4%

How Special Are Million-Dollar Listings? | Trulia Trends

They can LIST all they want but in terms of $1MM, $5MM, $10MM + sales...LA trumps SF. Look above. And look how SF nearly drops off of the list entirely when it comes to above 1mm. Like I said, it seems like a popular place amongst locals (who work and can buy 1mm) but it doesn't have a draw to non-working global people.