By Pat Shea,
President of Lyon Real Estate
If you purchased stock early on in Apple, Google, Microsoft or Facebook, you were either really
smart, pretty lucky or a little of both. What about housing? Twenty years ago, the median price of a home in
San Francisco was $262,000; in 2014, it topped $1 million. The entire San Francisco to San Jose corridor
has exploded with economic success and consequently, the evaporation of housing affordability. There
is no respite in sight and nowhere to grow except perhaps in greater Sacramento.
The arena project, coincidentally timed with a solid bounce off the bottom from a protracted recession,
has inspired a rush of investment and renewed commitment in our community.
Commercial properties and parcels of land are rapidly changing hands as plans for new hotels, housing,
retail and restaurants are all the rage. The transaction volume and occupancy figures for both apartments
and retail have significantly improved throughout the entire region, while even the industrial sector has gone from survival to growth mode in a few short years. Efforts at reinvestment in transportation including light rail and streetcars are well underway.
We are the fourth largest MSA in the largest state in the union.We remain well anchored economically
with our government workforce, health care and education base. The recent merger of our local economic
development groups has delivered new leadership and funding to attract expansion and start up opportunities. Innovation and entrepreneurship especially in the food, agriculture and biotechnology space,
thanks to UC Davis, will remain the focus and our golden opportunity moving forward.
The average median home price from San Francisco through Silicon Valley is more than double that of
greater Sacramento’s $310,000. California Association of Realtor's research says approximately 46
percent of our households can afford to purchase our region’s median priced home compared to just 20
percent in the Bay area. Now is the time to invest in land, buildings, businesses and most importantly,
homes in greater Sacramento. Twenty years from now people will be talking about just how smart and
lucky you are.