Google has announced it will be hiring 5,000 workers per year, over the next 5 years, for its Redwood City office. “But Sam, that’s an hour’s drive between Walnut Creek and Redwood City!” I know what you were thinking…. But first, let me explain why I’m posting about Google’s plan today.
Google has already bought six buildings in the Pacific Shores office complex on the Redwood City waterfront, and leased an entire campus under construction in Sunnyvale. The company’s plan is to hire over 40,000 total employees across San Francisco (and directly related cities) over the next ten years – with Redwood City going first. Google’s investment in these cities and direct real estate buys within the cities (along with hiring local and non-local people) has already started to drive up rent and home prices- as much as 30% right now in Redwood City alone.
Knowing Google’s impact, I went on a few message boards to see what people within the community are saying. I found three people who live in Walnut Creek and make the 59 mile commute to Redwood City right now for work that isn’t related to Google. I found 5 more who do the same but in the opposite direction. With rent and home prices already hitting a 30% increase, I suspect more and more employees will commute out of the direct “Google cities” for affordable housing.
Further, I would expect an increase in rent and housing costs in the next few years. I don’t expect this increase to be anywhere near 30%, but certainly it would reflect Google’s faith in real estate within our market. So, what does this mean for you? Well, now is the right time to get in on affordable home prices that will increase in value thanks to Google’s faith in hiring local and the company’s own real estate investments.
If you’re seeking to buy a home, or even downsize a home, there is no time like the present! Greater Walnut Creek’s (and the surrounding areas) real estate is currently selling at very reasonable rates and sellers are seeking to give more than they have in the past. Once Google’s 5-year plan is in motion, and the company moves on to implementing its 10-year plan, affordability may no longer be an option for people living directly in “Google cities” or even cities that are an hour commute away.
Until next time,