California
The state is in decidedly worse conditon than San Franciso. Once employment growth returns in 2011. The state unemployment rate, now at 12.5%, will fall slowlyand should average 11.8% for 2010. Californias economy will grow, but the unemployment rate will still see double-digits until 2012.
Its About Jobs
San Francisco, on the other hand, is doing much better. Personally, we have tech to thank.The reverse commute busses from Ebay, Apple, Google and Genentech have brought us a large and well paid enter base. Marcus and Millichap say rent rates are expected to soften in 2010, although we should should stabilize by midyear. And renter demand will lead to healthier performance starting in 2011. The pace at which we white collar jobs will be the primary driver behind a rebound in demand.
Form the Marcus aned Millichap web site: year over year through the first quarter, San Francisco payrolls decreased 4 percent with the elimination of 38,400 jobs. The pace of employment cuts has slowed in the past two quarters to just 4,900 positions, but employers have yet to begin making the net additions that will ultimately fuel renter demand for apartment properties. The financial activities sector, which has contracted by nearly 3 percent year over year at the national level, remains fairly resilient in San Francisco, adding 400 jobs during the 12-month period ending in the first quarter. Apartment rentals track job growth closely. When people have income and are not afraid they will pay higher rents and cap rates have risen 1% over last year.
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The state is in decidedly worse conditon than San Franciso. Once employment growth returns in 2011. The state unemployment rate, now at 12.5%, will fall slowlyand should average 11.8% for 2010. Californias economy will grow, but the unemployment rate will still see double-digits until 2012.
Its About Jobs
San Francisco, on the other hand, is doing much better. Personally, we have tech to thank.The reverse commute busses from Ebay, Apple, Google and Genentech have brought us a large and well paid enter base. Marcus and Millichap say rent rates are expected to soften in 2010, although we should should stabilize by midyear. And renter demand will lead to healthier performance starting in 2011. The pace at which we white collar jobs will be the primary driver behind a rebound in demand.
Form the Marcus aned Millichap web site: year over year through the first quarter, San Francisco payrolls decreased 4 percent with the elimination of 38,400 jobs. The pace of employment cuts has slowed in the past two quarters to just 4,900 positions, but employers have yet to begin making the net additions that will ultimately fuel renter demand for apartment properties. The financial activities sector, which has contracted by nearly 3 percent year over year at the national level, remains fairly resilient in San Francisco, adding 400 jobs during the 12-month period ending in the first quarter. Apartment rentals track job growth closely. When people have income and are not afraid they will pay higher rents and cap rates have risen 1% over last year.
REsourced from www.yourpropertypath.com
You may republish this article, as long as you do not edit and you agree to preserve all links to the author and www.yourpropertypath.com
Related Articles
Green Homes and Sales Trends
Gross Rent Multiplier: Pricing Fair Value For Smaller Properties
Short Sellers And The Forclosed Catch A Break
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