25 May How Facebook is Actually Affecting Real Estate Prices
Believe it or not, Facebook not only affects millions of people virtually, it also affects real estate prices. When the company decided to move its headquarters from one location to another, prices in the area skyrocketed. As you might guess, this phenomenon was both good and bad, for several reasons. Continue reading, to learn more.
Facebook’s Big Move
In 2011, Facebook announced that they would relocate from their long time home in Palo Alto, California to the neighboring city of Menlo Park. They completed their move this year, moving their headquarters to a 430,000 square foot office building designed by Frank Gehry. Since their move, both of these communities have experienced drastic changes in the prices of surrounding real estate.
Pressure in East Palo Alto
East Palo Alto, a city that neighbors Palo Alto, is the most affordable community located in Silicon Valley. The community stands strong after a sometimes painful past brought on by market crises and racially discriminatory practices. Now, the people of East Palo Alto live in fear of losing their homes to soaring real estate prices.
An Outdated Model
In an article on TechCrunch.com, Kim-Mai Cutler suggests that the problem is an outdated model of development. Tech companies are paying $90 per square foot for real estate in nearby Mountain View, which can be very discouraging to developing businesses and startups in search of real estate. But, housing projects and other changes to these cities’ physical infrastructure are slowed by exclusionary zoning and slow-growth policies.
The city of Menlo Park has approved some changes that could help to keep real estate prices under control. A 394 unit residential complex has been approved, and will be built near Facebook’s headquarters.
In addition, the city plans to add 202 units to their downtown area. Facebook has also taken steps to help out their new home. In February, the company acquired 56 acres of property in Menlo Park, and has made it clear that they are open to doing more with the property than just opening new office space.
Learn Real Estate Prices in Your Area
It’s no secret that real estate prices can be confusing to some. If you happen to fall into this category, there’s no reason to panic. Simply pick up the phone and call the experts at Previn Court Homes.
Scheduling an appointment is the best way to get all of your questions about the real estate market answered. Honestly, it’s the first step to purchasing the home of your dreams. Why not get started today?