This year, a number of major Silicon Valley tech companies are set to go public, and it could have a serious impact on house prices in San Francisco.
Uber, Lyft, Slack, Postmates, Pinterest and Airbnb are all planning to launch IPOs in 2019, according to a recent article in The New York Times, and this will likely spur a crop of freshly minted millionaires looking to drop some serious dough to upgrade their nests.
According to the NYT, one agent who specializes in data analytics at Compass said the effect could send house prices in San Fran into the stratosphere as competition among buyers heats up.
Forget about the one-bedroom condo for less than $1 million of the single-family house for $1-3 million, he said, asserting that a lack of inventory could mean that in five years, the average sale price for a single-family home in San Francisco could climb to $5 million, and that buyers will be bringing all-cash offers to the table.
“Now, seemingly the whole city – and not just the financial planners and the real estate agents and the protesters who block tech buses – is scrambling to prepare,” the Times wrote.