A survey conducted by SF curbed last week shows that nearly 40% of Bay Area residents are “Considering leaving the Bay Area in the next few years.” Inventory continues to decrease statewide, and the US Census reports 80,000 people leave the Bay Area every year, while another 100,000 are entering. With a continuously increasing population, and static inventory levels, prices will only continue to increase. Inventory is indeed decreasing, as homeowners find that the homes they’re looking at buying up into, are priced higher than they’re willing to pay for the added amenity/space/location, let alone capital gains on the sale, and the taxes paid for the increased purchase price on the new home. More long-term homeowners (Boomers) are staying put than moving up. This in turn aggravates the inventory levels, and pushes prices up. A vicious cycle that only increased development, and exodus can improve.
At the same time that we’re seeing this jockeying of land and life in the Bay Area, and indeed across all of California, we’re conversely seeing a surge in development and growth here in the Reno area. Tesla has been building the largest building in North America just outside downtown Reno in the “Tahoe-Reno Industrial Center,” along with Google having recently announced their move to buy land in the Park as well. All of this development brings economic stimulus to a previously depressed area, through new jobs and annual business taxes going straight back into the local economy.
Lake Tahoe, Reno and the surrounding area is becoming the go-to home for more and more implants from cities nationwide, whether in the creative sector, and tech-industry, sports-industry, or otherwise. Patagonia, who has had roots in the Reno area for a few years now with their Outlet store and Distribution Center, has now moved from the outskirts to downtown, helping to push the gentrification of the area.
With our beautiful outdoors, healthy clean air, more affordable inventory, and desirable proximity to the Bay Area and international travel with Reno, Truckee, and Sacramento airports nearby, more Buyers are looking outside of their current primary neighborhoods (primarily the Bay Area) to relocate, or invest for the future here in our area. I can’t tell you how many 30-40 year olds I speak with, who have, or are considering, the move up here, first as an investment and secondary home, with the vision of full-time move up within 5 years.
The median home price for single family and condo/town homes in the Tahoe-Truckee area was $605,000 versus $709,000 in the Bay Area1 for the month of March, 2017. Lake Tahoe offers a respite from the congestion of busy cities, with similar quality of life, and a greater expanse of the outdoors and adventure.
Recently, the 3rd Street Flats were redeveloped, located in downtown Reno, notorious for its dingy casinos and grim alleyways. This development has brought new life to an otherwise dilapidated part of town, alongside the Whitney Peak Hotel, and a few piece restaurants and bars, such as Mark Estee’s newest venture Liberty Food and Wine, a great riverside beer garden, the Eddy and numerous shops and restaurants as one moves down into Mid/Old Town of Reno. I like to liken Reno to a young budding desert-Portland, or San Francisco. Reno is definitely in its early stages, with plenty of seeding portions still, and wide-spread sprawl, however I see a great deal of promise for investment and development. So do these people: Don and Sarah Clark. The Don J Clark Group is proposing a $1.2 billion dollar development project in Reno, over 17 acres of property, featuring 1,900 residential units, 450,000 square feet of office space, 2 non-gaming hotels, 250,000 square feet of retail space, and much more! If approved, the Group would space the development out over 10 years and 6 phases. Along with the structural items, the development will build a beautiful array of infrastructure streetscapes and amenities, water, sewer, power, landscaping, relocation of a few public buildings, and storm drainage. “This is our home, we want to build the best home for us and everyone else,” Don Clark said. “We’ve got one chance to make this a great city and it’s now.”
Tahoe and Reno is budding with new life, and I am so excited to be a part of the growth!