Fizzling tech companies and softening rents are a few of the signs San Francisco’s real estate boom may be in the final innings.
Paragon Real Estate Group chief market analyst Patrick Carlisle says a pullback in venture funding and an anemic stock market are pushing hiring to lower levels, according to Bloomberg. Fewer jobs translates into less demand for residential space.
The luxury market is showing signs of softness as foreign buyers are pulling back. The number of unsold luxury condos rose 44% from June 2015. Inventory for high-end homes climbed 42% from last year.
The cool-down is having systemic effects across all real estate. Boston Properties CEO Doug Linde has said the market for big office leases is likely over in San Francisco. [Bloomberg]
