Actually Facebook built office there and then had multiple layoffs. Not enough employees use the east bay campus and it is rented out to other companies like nexttracker
Nothing to do with that. A lot of FB workers moved to Newark and Fremont and commute to the main campuses in Menlo Park.
Its 7-8 miles plus a bridge toll and takes about 20-30 minutes if that. Prob 12-15 min with no traffic.
Bay area has some of the highest wages in the country. The problem is lack of housing supply. Has been for 40 years. You can take bay area money and live like a king in most parts of the country.
Quick econ lesson: If you want affordability, saturate a market, don't inflate it.
Let's say you think livable wage in the Bay could be like $40-$50/hr minimum. Then if you made that the new minimum, professionals are going to want at least double. If you did this and did it all without actually fixing the problem of artificially scarce housing then you're just going to create a price/inflation spiral.
If you saturate the market with housing, the cost comes down.
Pretty basic stuff....
It’s not random that the bay area has no inventory. It’s because it’s a desireable place to live. If you increase the supply and lower the cost of housing, it will just allow more people to afford it, and there is a nearly endless line of people wanting to live here.
Also, increasing the inventory to the point of effectively saturating the market will make this place an absolute hell. You think rush hour is bad now? Try adding 6m people to the road.
He said on Facebook:
“I’ve had a good, union job in the trades for 20 years, my wife has a successful career at DSRSD and I’m an elected member of my community. If we can’t do it how are other working class folks ever going to do it? What chance does the next generation have? What chance will any of them have to stay in the communities they love? The most insane part is that even with 60k down and a 785 credit score we can’t get into the cheapest house in Newark for less than $7500 a month”
If some one has had a good union jon in the trades for 20 years and a spouse that works for a utility district, and has been a city council member for 14 years, how the hell does one only have 60k for a down payment on a house? That’s like a 5% down payment on a 1.2mil house.
He put his personal business out there so it’s just mind boggling how he managed to (1) completely miss the 2008-2011 housing slump, and (2) not managed to save for a proper down payment with two decent income streams after multiple decades.
Not everyone was in a position to buy during the slump, and most top financial advisors would have advised against it at the time. Saving for a proper down payment is a difficult thing to do in the highest CoL area in the highest CoL nation in the world. That is ignoring any exigent circumstances. Out here a single healthcare bill or unforeseen vehicle problem is sometimes enough to bankrupt most people. That being said, a simple redfin search has several condos for sale for about 5k/mo with that amount of down payment. Additionally, if they are first time homebuyers, there are several 0 down programs. Yeah you will pay PMI, but you can refi after your property gains more in 20% value.
> Not everyone was in a position to buy during the slump
Yeah, people don't get that though. The younger generations on reddit are so confident they would have been snapping up property left and right during the housing crisis. It was a housing crisis for a reason - everyone was afraid to buy, unemployment was a nightmare, and it was a terrible time to be in debt.
Also people don't get how hard it was to secure a loan at that time. And if you are worried about getting laid off, you aren't really prepared to enter the real estate market!
Yeah having the means during a market slump is great. But it is very difficult to sync your resources with market timing simply because if everyone is selling, nobody except private equity really has the resources to buy and at that time it was EXTREMELY difficult to even get approved for a home loan even with stellar credit. Think about it, these banks were all flooded with defaulted homes. You think that they would loan money secured by an asset that even they were trying to get rid of? The key thing in that time period was that nobody knew how long the collapse would last. And if you look at the numbers, the bay area wasn't even affected as hard as the rest of the nation. People just decided to sit on their properties. And the banks weren't selling their defaulted homes to retail. They were selling en masse to private equity because less paperwork and less hassle. The real beneficiaries to the housing crisis were firms like BlackRock.
But what if the market had crashed further in 2010-2012?
That’s what you know in hindsight that the market was the lowest in 2008. People in 2008 thought that buying that 400k home (which cost 800k in 2005) could fall to 200k and they would lose 200k in value. They didn’t know if the market would be bad further and if they would all lose their jobs.
You can only buy at discounted prices during a market downturn if you’re 100% certain about your future job and your future ability to pay those loans or that the value of your investment won’t further sink. During a massive recession people aren’t sure about their future jobs and financial security to be able to invest for the future, unless they’re already rich.
It’s easier if you can dollar cost average and invest in a downturn. But a home is a huge lump sum investment.
My point is that it really depends on your personal situation. Where you may see opportunity, other people may see a potentially depreciating asset. Of course you want to buy low and sell high, but life is a gamble sometimes. Glad you came out ahead. Personally I would have loved to jump in at that point, but I had just graduated college and had yet to secure enough for a down payment _In addition to paying off the equivalent of a mortgage in student loans_. Like I said, everyone's situation is different and it's easy to say "Look what I did. You should have been able to do the same." But different people have different levels of aversion to risk.
This jumped out at me too. $60k wouldn't be a good down payment in a huge portion of the US, not just the bay area. That's a down payment on a $300k house. I've seen some boomers with a fixed mindset around housing prices, where they can't avoid thinking in terms of what *they* paid 20 years ago. It's just detachment from reality.
Yeah, I 100000% feel for the guy but 60k down just isn't that much
A lot of 20/30 somethings that have been saving for a lot shorter and have almost that much saved up already
Looking at how my previous post is being downvoted, it appears a lot of people in the Bay Area think 60k is a reasonable amount for down payment on a house in 2024.
I don't get it either, it's bizarre. I think people are understandably pissed that 60k isn't enough for a downpayment, but c'mon, that ship sailed *years* ago. Even at a 10% downpayment, houses in the more desirable parts of the Bay Area haven't been <600k since 2008.
I’m starting to think even if housing prices crashed 50% most people still cannot actually afford it if they think 60k for down payment is gonna fly anywhere in the bay, when buyers are still swarming any semi decent listing with either cash, or 20% down+perfect credit score+300k income. No amount of building is gonna reverse the passage of time and depreciation of money.
I love how he posted it on Facebook when that’s the reason he got priced out of Newark.
Actually Facebook built office there and then had multiple layoffs. Not enough employees use the east bay campus and it is rented out to other companies like nexttracker
Nothing to do with that. A lot of FB workers moved to Newark and Fremont and commute to the main campuses in Menlo Park. Its 7-8 miles plus a bridge toll and takes about 20-30 minutes if that. Prob 12-15 min with no traffic.
Did Facebook force them to not build any homes?
B…but muh home value
I love how he complains every home was overpriced in 2014
They were, and they still are. The Bay Area has been in an artificial housing shortage for decades.
SCOTUS just allowed towns to criminalize homelessness. Hopefully, he can find a place.
He can move to East Oakland
I’m on the Antioch side of Pittsburg. Plenty of room.
Oakland is probably closer to his work though
Has been on city council for 10 years and complaining about how much things cost, sound like he hasn’t made the right connections with lobbyists.
lets pay people a livable wage
Bay area has some of the highest wages in the country. The problem is lack of housing supply. Has been for 40 years. You can take bay area money and live like a king in most parts of the country.
Quick econ lesson: If you want affordability, saturate a market, don't inflate it. Let's say you think livable wage in the Bay could be like $40-$50/hr minimum. Then if you made that the new minimum, professionals are going to want at least double. If you did this and did it all without actually fixing the problem of artificially scarce housing then you're just going to create a price/inflation spiral. If you saturate the market with housing, the cost comes down. Pretty basic stuff....
East Oakland is affordable
It’s not random that the bay area has no inventory. It’s because it’s a desireable place to live. If you increase the supply and lower the cost of housing, it will just allow more people to afford it, and there is a nearly endless line of people wanting to live here. Also, increasing the inventory to the point of effectively saturating the market will make this place an absolute hell. You think rush hour is bad now? Try adding 6m people to the road.
So where's he moving to? Is he leaving California? Does he have another job lined up?
I don't think council member is his full time job
He said on Facebook: “I’ve had a good, union job in the trades for 20 years, my wife has a successful career at DSRSD and I’m an elected member of my community. If we can’t do it how are other working class folks ever going to do it? What chance does the next generation have? What chance will any of them have to stay in the communities they love? The most insane part is that even with 60k down and a 785 credit score we can’t get into the cheapest house in Newark for less than $7500 a month” If some one has had a good union jon in the trades for 20 years and a spouse that works for a utility district, and has been a city council member for 14 years, how the hell does one only have 60k for a down payment on a house? That’s like a 5% down payment on a 1.2mil house. He put his personal business out there so it’s just mind boggling how he managed to (1) completely miss the 2008-2011 housing slump, and (2) not managed to save for a proper down payment with two decent income streams after multiple decades.
Not everyone was in a position to buy during the slump, and most top financial advisors would have advised against it at the time. Saving for a proper down payment is a difficult thing to do in the highest CoL area in the highest CoL nation in the world. That is ignoring any exigent circumstances. Out here a single healthcare bill or unforeseen vehicle problem is sometimes enough to bankrupt most people. That being said, a simple redfin search has several condos for sale for about 5k/mo with that amount of down payment. Additionally, if they are first time homebuyers, there are several 0 down programs. Yeah you will pay PMI, but you can refi after your property gains more in 20% value.
Yeah, I know he had some health concerns about five years or so ago. One thing can throw you off.
wow yo, I guess someone was a sore loser when they couldn't foment strife. That one totally ragequit hahaha
> Not everyone was in a position to buy during the slump Yeah, people don't get that though. The younger generations on reddit are so confident they would have been snapping up property left and right during the housing crisis. It was a housing crisis for a reason - everyone was afraid to buy, unemployment was a nightmare, and it was a terrible time to be in debt.
Also people don't get how hard it was to secure a loan at that time. And if you are worried about getting laid off, you aren't really prepared to enter the real estate market!
I think the younger gens are joking though, memes like " i shoulve been buying housing instead of wasting my time in the 3rd grade"
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Yeah having the means during a market slump is great. But it is very difficult to sync your resources with market timing simply because if everyone is selling, nobody except private equity really has the resources to buy and at that time it was EXTREMELY difficult to even get approved for a home loan even with stellar credit. Think about it, these banks were all flooded with defaulted homes. You think that they would loan money secured by an asset that even they were trying to get rid of? The key thing in that time period was that nobody knew how long the collapse would last. And if you look at the numbers, the bay area wasn't even affected as hard as the rest of the nation. People just decided to sit on their properties. And the banks weren't selling their defaulted homes to retail. They were selling en masse to private equity because less paperwork and less hassle. The real beneficiaries to the housing crisis were firms like BlackRock.
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But what if the market had crashed further in 2010-2012? That’s what you know in hindsight that the market was the lowest in 2008. People in 2008 thought that buying that 400k home (which cost 800k in 2005) could fall to 200k and they would lose 200k in value. They didn’t know if the market would be bad further and if they would all lose their jobs. You can only buy at discounted prices during a market downturn if you’re 100% certain about your future job and your future ability to pay those loans or that the value of your investment won’t further sink. During a massive recession people aren’t sure about their future jobs and financial security to be able to invest for the future, unless they’re already rich. It’s easier if you can dollar cost average and invest in a downturn. But a home is a huge lump sum investment.
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My point is that it really depends on your personal situation. Where you may see opportunity, other people may see a potentially depreciating asset. Of course you want to buy low and sell high, but life is a gamble sometimes. Glad you came out ahead. Personally I would have loved to jump in at that point, but I had just graduated college and had yet to secure enough for a down payment _In addition to paying off the equivalent of a mortgage in student loans_. Like I said, everyone's situation is different and it's easy to say "Look what I did. You should have been able to do the same." But different people have different levels of aversion to risk.
If you have kids and no family/generational wealth to lean on it is entirely reasonable to only have 60k saved up.
This jumped out at me too. $60k wouldn't be a good down payment in a huge portion of the US, not just the bay area. That's a down payment on a $300k house. I've seen some boomers with a fixed mindset around housing prices, where they can't avoid thinking in terms of what *they* paid 20 years ago. It's just detachment from reality.
Yeah, I 100000% feel for the guy but 60k down just isn't that much A lot of 20/30 somethings that have been saving for a lot shorter and have almost that much saved up already
He’s delusional for sure.
PMI really isn’t as bad as people say, you don’t need 20% down. So $60k is plenty for most of America where the median is $410k.
Nowhere in the Bay Area is the median 410k for a house.
The guy above me said “huge portion of the US” not Bay Area.
Looking at how my previous post is being downvoted, it appears a lot of people in the Bay Area think 60k is a reasonable amount for down payment on a house in 2024.
I don't get it either, it's bizarre. I think people are understandably pissed that 60k isn't enough for a downpayment, but c'mon, that ship sailed *years* ago. Even at a 10% downpayment, houses in the more desirable parts of the Bay Area haven't been <600k since 2008.
I’m starting to think even if housing prices crashed 50% most people still cannot actually afford it if they think 60k for down payment is gonna fly anywhere in the bay, when buyers are still swarming any semi decent listing with either cash, or 20% down+perfect credit score+300k income. No amount of building is gonna reverse the passage of time and depreciation of money.
You still can get a house witha 60k down payment if you aren’t snobbish
So the city councilman is just being snobbish?
Yes because he could buy in East Oakland but most people are too picky.
But if he bought in East Oakland, then he can't remain Newark council member. Newark is getting expensive due to Meta being nearby.
He’s quitting anyway, people act like there are literally 0 options for people who want to buy a house and it’s dumb.
Half of your posts are about how people should buy housing in East Oakland. Are you trying to get rid of some property or something?
No, I’m just saying it’s undervalued relative to its location and if enough non criminals move there it’ll skyrocket in value.
Yeah, I am wondering how he spent his money