Are things looking bright around here in Silicon valley or what?! And we don’t just mean the holiday lights and happenings all aglow! As we continue to keep you apprised of the latest market news, we just have to share a few trends filling that cup half-full in the New Year before we have even had a chance to raise a glass. Here is what you can look forward to in Silicon Valley in 2020…
#1: HEALTHY JOB GROWTH & HAPPY EMPLOYEES
As reported by Business Insider and compiled annually by Glassdoor, the list of the 100 best companies to work for is here. Tech companies dominate the list, making it no surprise that most of the companies in the top 25 are right here in Silicon Valley and Northern California. With the rankings based on employee reviews, individuals note the high salaries and enviable perks among what makes these corporations king.
In related news, our employees are not only happy, but their companies are healthy too! The LA Times reports that while the Golden State is unlikely to avoid the slower pace in economic growth that the rest of the country will also experience, California’s economic growth will outpace the nation’s yet again. In 2019, the state experienced job growth above 2% compared to just 1.35% outside the state. The driving forces are the booming tech sector and the logistics industry fueled by the Southern California ports.
#2: EAGER & ENTHUSIASTIC BUYERS
The holidays may have come just a little bit early for first-time homebuyers (FTHB’s). Earlier in the week, Fannie Mae announced that the HPSI (Home Purchase Sentiment Index) had risen 5.3 points year-over-year to a near all-time high of 93.8. Then the Federal Reserve held off on raising interest rates for the time being; low rates coupled with a strong job market (see above for Silicon Valley specifically!) mean that buyers have more purchasing power, increased confidence and are just waiting on inventory. (Hint: sellers… this means YOU.) The number of FTHB’s is projected to be between 8.3 and 9.2 million from 2020 – 2022, a notable increase from 7.6 million FTHB’s from 2016-2018.
#3: MORE SENIOR SOLUTIONS
Have you noticed that senior housing solutions have NOT been in the Silicon Valley headlines… until now. CraneWatch in the Silicon Valley Business Journal reports that there are 3 active senior housing projects proposed for San Jose as of late, with 2 breaking ground by the end of 2020. In addition, Atria Almaden is set to open in late 2020 and is now pre-leasing.
While Atria Almaden will offer independent living, assisted living and memory care, the slated MorningStar Senior Living community (in collaboration with Swenson in West San Jose) will offer assisted living and memory care via 103 units in 3 different unit types. The third community, Delmas @ Downtown West, has submitted preliminary plans to offer 52 memory care units and 23 assisted living units less than one mile south of Diridon Station. Yet one more step in the right senior solution direction is planning to provide 147 affordable housing units on Blossom Hill Road (remember where the old roller rink was?) – though this project application is still in review amidst community congestion concerns.
Ultimately, these developments will fill the gaps in the ‘best of class’ retirement living offerings and affordable opportunities that the Silicon Valley senior housing sector has been lacking.
RESOURCES USED:
The 25 Best Companies You'll Want To Work For In 2020
California’s Economy Will Grow Faster Than The Nation’s, UCLA Forecast Predicts
Is Now A Good Time To Buy A House? Economists Say Yes As The Federal Reserve Holds Interest Rates Steady
Home Purchase Sentiment Rebounds To Near Record Highs
Three Active Senior Housing Projects Are In The Pipeline For San Jose
Atria Almaden
Cheers to a New Year with MUCH to look forward to,
Mark & Sarah
Mark Barber & Sarah Healy
408-291-0072 / 408-290-0730
DRE 01220031 / DRE 02061586