Palo Alto, CA, May 17, 2013 --(PR.com
)-- Property manager sees rate increases as tribute to competitive local job market.
Scott Safadi, who manages numerous apartment units in the Silicon Valley area, has noticed a significant upswing in rent prices in the past couple of years. While the San Francisco Bay Area isn’t immune to the high unemployment rates suffered by the rest of the country, Scott Safadi notes that Silicon Valley is home to some of the best business minds in the country, leading many in the area to thrive even in tough economic times.
More specifically, Scott Safadi has noticed that in the past two years, rents have increased in the Silicon Valley area by a percentage in the double digits. While Silicon Valley remains a desirable area in which to live and work, Scott Safadi is concerned that rents in the area may be reaching the ceiling of affordability. Even with high demand for residences in the area, Scott Safadi has found that there is a limit to what people are willing or able to pay. Scott Safadi says this is especially true during a time when wages aren’t rising significantly.
By examining the current market trends, Scott Safadi hopes property owners can predict whether rental costs will continue to be in line with what the Silicon Valley population can afford.
One factor Scott Safadi thinks may impact rental prices is the drastic increase in recent months in permits for new apartment construction. This is an indication of changes in supply and demand that the market may soon see, Scott Safadi advises, as the Silicon Valley area fills with units waiting to be filled. The rent increases will only hold if incomes increase in the next few years, Scott Safadi says, noting that renters will only agree to pay what they can afford.
Scott Safadi adds, however, that the rapid growth of apartment development in the San Francisco Bay Area will have a limited bearing on current units. This is especially true of the vintage complexes in the Silicon Valley area, many of which were built in the ’60s, and ’70s, according to Scott Safadi. The new units will appeal to more affluent renters, Scott Safadi states, putting it in a different range altogether than these classic apartment complexes that predominate the area.
Even with such phenomenal growth in available units, Scott Safadi believes that the current rent rates are likely sustainable. The local job market continues to grow as tech innovation expands and brings with it more job opportunities to Silicon Valley and the rest of the Bay Area. Within a short drive of the home office of Scott Safadi are big-name tech giants like Google, Facebook, YouTube, LinkedIn and more.
A Dartmouth College graduate, Scott Safadi is a longtime resident of the Bay Area. Scott Safadi bears a long history of working with real estate in the area, giving him an edge over other local property management firms. Scott Safadi and his firm, CBPM, manage a variety of multi-family properties in the Silicon Valley area.