Friends or clients who have just arrived in San Francisco and Silicon Valley often exclaim: “Why are housing prices so expensive here!” Not only are housing prices high, but so are rents. Over the past thirty years, Santa Clara County, where San Francisco and Silicon Valley are located, has been the best appreciating area in California, with an average annual appreciation of about 6%, slightly lower than the stock market (which averages around 8%), but with much less risk. In October 2013, Veros (a real estate lending company) predicted that San Francisco and Silicon Valley would grow at a rate of 10-15% in 2014, leading the nation. Below are some reasons for the continuous appreciation of real estate in San Francisco and the Bay Area, which we hope will provide reference for friends investing in U.S. immigration and U.S. real estate.
First: Limited Land
San Francisco is located at the tip of a peninsula, surrounded by the sea on three sides. The entire Bay Area is bordered by the sea on one side and surrounded by mountains on three sides, with a hollow bay in the middle. Therefore, there is very little land available for commercial and residential use. There are over 300 peaks in the nine counties that exceed 300 meters. Additionally, forty years ago, environmental advocates in the Bay Area legislated the establishment of the "Mid-Peninsula Greenbelt Protection Zone." This protection zone occupies 250 square kilometers, including San Mateo and northern Santa Clara County. Therefore, those familiar with the Mid-Peninsula will find that after entering San Mateo from Highway 280 to the south, there are hardly any houses west of the highway, only beautiful hills, oak trees, wildflowers, and leisurely cattle and horses. So, those who enjoy hiking are fortunate.
Second: High Population
California is the most populous state in the United States. About one in every eight Americans lives in California. California has a population of approximately 38 million, covering an area of 424,000 square kilometers. San Francisco and the Bay Area have a population of over 7 million, covering an area of 18,000 square kilometers, meaning nearly 20% of California's population is concentrated in 4% of its area. In recent urban rankings, San Francisco and San Jose in Silicon Valley are the 2nd and 3rd most densely populated cities in the United States. The average annual population growth in the U.S. is about 0.8%, while California continues to grow rapidly at around 1%, and Santa Clara County, where Silicon Valley is located, boasts an annual growth rate of 1.6%, leading the state!
Third: Strong Economy and Diverse Job Opportunities
How strong is Silicon Valley's economy? In 2013, the top 20 global super brands included 1) Apple, 2) Google, 3) Coca-Cola, 4) IBM, 5) Microsoft, 6) General Electric, 7) McDonald's, 8) Samsung, 9) Intel, 10) Toyota, 11) Mercedes-Benz, 12) BMW, 13) Cisco, 14) Disney, 15) HP, 16) Gillette, 17) LV, 18) Oracle, 19) Amazon, 20) Honda. Among these, six companies have their headquarters in Silicon Valley (1, 2, 9, 13, 15, 18), and another six have branches in Silicon Valley (4, 5, 6, 8, 14, 19). In summary, anything related to technology that does not come to Silicon Valley is out of the loop. Apple is expanding in Cupertino, and its new headquarters, set to be completed in 2015, will employ 12,000 staff. Nearby, Google is fiercely competing for land in Mountain View. At the end of last year, Google purchased over 100,000 square meters of office space for nearly 6,000 employees. LinkedIn is expanding from Sunnyvale to Mountain View, planning to add 8,000 employees. Samsung has demolished the original two-story red building in northern San Jose and is constructing a ten-story building on the site.
How high are salaries in Silicon Valley? According to Bay Area BizTalk, the average annual salary for engineers in Silicon Valley ranges from $100,000 to $200,000, plus bonuses and stock income. For every high-tech company that hires an employee, it creates 2-3 additional job opportunities in the local area, from restaurant workers, retail, construction, to cleaners and teachers. And all these people need housing! Is real estate in Silicon Valley expensive? According to a survey by the California Association of Realtors, nearly half of San Francisco and Silicon Valley residents can afford to buy a home. In comparison, only 20% of Beijing residents can afford to buy a home.
Fourth: Pleasant Climate and Beautiful Scenery
California has a Mediterranean climate, and the Bay Area enjoys a mild and dry climate, with warm winters and cool summers due to the Pacific's influence. The average daily high temperature throughout the year ranges from 13 to 21 degrees Celsius. Here, air conditioning is hardly needed. Thanks to the gentle sea breeze, San Francisco and San Mateo have the cleanest air in the United States.
San Francisco is one of the busiest tourist cities in the United States. From Napa Valley to Tahoe ski resorts, to beautiful coastlines and redwood forests, there are countless attractions! A survey shows that over 50% of Americans would like to live in California.
Fifth: Diverse Culture
The United States is a nation of immigrants. California is a state where minorities make up the majority. Asians account for about 14%, whites 40%, blacks 7%, and the rest are Latino. In the Bay Area, one in every eleven people is Chinese. Asians make up 23%, including Indians, Koreans, Vietnamese, Filipinos, Japanese, and more. Whites account for 52%. In the past, when financial meetings were held at high-tech companies, it was like a small meeting at the United Nations. The CEO was a native white, the second in command was Italian, the finance director was Russian, the head of technology was Indian, and the small supervisor in the application department was Latino, along with Filipinos, Vietnamese, and others. In short, in Silicon Valley, do not judge by appearance. As long as you are hardworking, skilled, innovative, and good at networking, regardless of ethnicity, you have the opportunity to succeed!
Diversity is also reflected in food. Asian supermarket chains are found everywhere in areas with large Chinese populations. You can find mooncakes, Wuliangye liquor, and Lao Gan Ma chili sauce. There is a wide variety of international cuisine. Chinese food includes Northeastern cuisine, Hunan cuisine, Shanghai cuisine, Sichuan cuisine, Cantonese cuisine, Chaozhou cuisine, Taiwanese snacks, hot pot, etc., and the more authentic, the more popular. Other countries' cuisines include Thai, Mexican, Japanese sushi, as well as Brazilian, Greek, Middle Eastern, Ethiopian, and countless others.
