Are you planning to move into the Bay Area and want to know whether it is better to buy a house or rent a home? In that case, you can rest your worries as we will help you figure out the best option in 2023.
Why Many People Are Considering Moving Into Bay Area
To begin with, the Bay Area is seeing a massive job surge. It is a hotspot of innovative and tech-industry employment since it hosts prominent firms such as Apple, Tesla, Google, Yahoo, Netflix, Facebook, and etc. Furthermore, these positions give high and arduous working hours with elevated compensation and other enticing office benefits.
The weather in the Bay Area is undeniably gorgeous. The Bay Area gets plenty of sunshine and has mild temperatures throughout the year that are neither too cold nor too hot. In addition, you can reach many of the incredible spots on the planet if you dwell in the San Francisco Bay Area! You can contact a reputed bay area rentals and property sales company to get assistance while choosing your home.
Being close to the San Francisco Bay Area, you can visit prominent locations like San Diego, Mexico, Los Angeles, Death Valley, and even sand dunes when you go down to the south. You can reach towering Sequoias and the magnificent Yosemite Park by going southeast.
The Eastern side is full of extraordinary ski hotels, while the vast redwood jungles and Napa Valley occupy the northern side of the Bay Area. In a nutshell, it is relatively impossible to experience boredom while residing in the San Francisco Bay Area.
How It Is Like Buying A House In Bay Area
If you reside in the San Francisco Bay Area, there are numerous benefits and drawbacks to owning a home. When you purchase a building, you are making an investment in real estate and committing to developing equity. Since property values may improve later on, buying a house might help homeowners get more money when they sell it.
However, specific expenses like mortgage expenditure, maintenance charges, property tariffs, remodeling, restorations, and utilities, may need to be considered. The homeowners’ organization will ask you to pay maintenance fees if you stay in a condominium on a monthly basis. You have to remember that other costs like meals and transportation are not included.
Purchasing a house in the San Francisco Bay Area is quite expensive. As per reports from Zillow, the mid-house price was around $1.61 million (as of March 2023), which is a 12.4 percent increase from last year. Your monthly expenses are frequently stable if you retain a fixed-rate mortgage since your payment proportion is constant. As a result, you can get a clear sense of the money you need to conserve every month to fulfill your obligations.
However, there is also the subject of property taxes to consider. California’s significant property tax percentage is 0.73 percent, which is less compared to the federal median of 1.07 percent. The San Francisco Bay Area’s property tariff price was 0.64 percent, so a $1 million house will have $6,400 as property taxes each year.
How It Is Like Renting A House In Bay Area
Renting is a completely different scenario. It was originally thought that spending money on monthly rent was a waste of money. However, for people who wish not to deal with the routine property fees, renting a house seems suitable. You would not need to worry about improvements or other costs. In addition, the lease contract tends to cover several of your expenses. Also, paying rent is frequently less expensive than a monthly mortgage payment.
Even though there is a lack of extra costs, renting in the San Francisco Bay Area can be expensive in some locations. The median rent for a single-bedroom flat was $2,343, while a double-bedroom quarter in the city cost around $2,711. It will range from $28,000 to $33,000 every year.
If the lease comprises the expenses of heat, water, and electricity, renting a flat is better since you do not have to be concerned about property taxes, condominium expenses, restorations, and utilities. As a result, you might save a bit of extra cash, which can be used later.
However, rents vary a lot when the economy improves and deteriorates. On an empty property in the San Francisco Bay Area, owners can fix the monthly rent as they want to. However, the city has rent control enforcement which implies that owners can only raise the rental price to a specific amount if the property is inhabited.
Where To Rent Houses In Bay Area
Here we have listed the best locations to live in the Bay Area according to your budget. Some places have average monthly rent that is more affordable, while other locations have expensive rents.
1. Menlo Park:
With a monthly rent of $4,368 on average, Menlo Park is the most expensive location in the Bay Area. However, it has multiple educational institutions, and protected communities and is located near the ocean.
The median monthly rental price goes around $2,900. This location features 12.25 percent empty properties, so you can get a house quickly.
3. Palo Alto:
In Palo Alto, 45.5 percent of inhabitants are renting a house rather than owning one. You can get a single bedroom flat for an average monthly price of $2,569.
If you want to live near the international airport, Burlingame is the best place, and it has a median monthly rent of $2,500.
5. Los Gatos:
You can get a single-person flat for an average price of $2,260 every month and get a glimpse of lions occasionally on the streets.
In Sunnyvale, 56 percent of the total population lives in rental houses. The average monthly rent for a single bedroom flat has decreased, and come to $2,145.
For people who want to live and experience nature, Hayward is the best place where you can get a single-bedroom flat for $1,895.
Whether you wish to purchase or rent a house, Fremont has affordable housing facilities with a price of $1,488 for a studio apartment and $1,808 for a single-bedroom flat.
9. Jack London Square:
Food, cultures, and accessible transportation facilities represent Jack London Square. You can pay $1,488 for a studio flat and $2,239 for a double-bedroom apartment.
Based on your budget, you can either buy or rent a house in the Bay Area. You can acquire affordable housing in some locations and expensive houses in other places in the Bay Area.