San Francisco real estate properties are a bit pricey. The high home prices are being linked up to the technology sector like Apple company.
The Wall Street Journal reports that protesters are already blaming the technology sector for the mounting home prices in San Francisco, California. According to these individuals, "the industry's high salaries and lavish stock-option awards are fueling the increases."
Obviously, it is hard to prove this claim. The only observation that the protesters have is the fact that most cities with "highest concentrations of technology workers also have limited housing supply and tough rules governing new projects."
Report says that San Francisco, California is the hub of tech firms. Famous technology firms include Facebook Inc. and Apple Inc. It is noted that FB 1.55 % and AAPL -3.19 % are situated in areas with rising home prices.
To prove that there is truth to this claim that the San Francisco real estate has a never ending increase of home prices, "WSJ commissioned home tracking company Zillow to provide some hard data," 9to5mac said. The company will track the increase home values owned by employees of Apple Inc. This is also to prove if the houses in the area has increased at a greater extent and at a rapid time, also to a given similar demographics.
The tracking of Zillow came up with a result stating that there's "direct link to tech companies like Apple." This study is conducted without biases since "zoning laws and regulatory red tape" have been duly noted and acknowledged that it had significant effect as to "limiting the supply of housing at a time when demand is increasing."
However, date clearly showed that "Homes occupied by Apple workers are appreciating at 18% a year, compared with 11% for San Francisco as a whole and 12% for San Jose. Since iPhone sales launched in June 2007 [and stock values rose], the Zillow analysis found, the average difference between the median home value of Apple workers and San Jose workers has swelled to 20% from 13%."
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