"We Don't Belong Here Anymore" - Even Landlords Are Fleeing The Bay Area

Peter Thiel and his band of libertarian-leaning Silicon Valley-types aren't the only ones scrambling to leave the Bay Area: As we've noted time and time again, staggering economic inequality is a daily fact of life in the area surrounding San Francisco - largely because rapidly growing home valuations have left couples earning as much as $500,00 a year feeling like they're being steadily priced out.

And while we've previously covered the exodus of renters to low-cost states like Texas, in a report published Saturday, the East Bay Times explores an even more troubling trend: Landlords are increasingly taking the cue from their tenants and joining in the exodus.

After all, with one in four US homes sold during 2017 going for more than $500,000 above their asking - particularly in hot real-estate markets like San Francisco, where buyers battling for the highest bid have begun relying on clauses that will automatically - and incrementally  - raise their bids until they either emerge victorious,  or reach a predetermined ceiling.

East

For at least the last nine months, the Bay Area has led the country in the number of departing residents, as everybody who isn't a tech worker - including essential civil servants like police and fire fighters - begins to feel like a secondary servile class. One landlord said several of his tenants asked if they could move with him when he announced he was selling the building and departing for Colorado

Tony Hicks moved to San Jose in 1981, but he’s had enough.

Hicks told his 11 tenants he would soon place the three homes he owns on the market. He expected disappointment. Instead, most wanted to move with him to Colorado.

"It didn’t take them long," Hicks said. "I was surprised."

Hicks first bonded with many of his tenants over their shared appreciation for conservative politics in an environment that is openly hostile to views that don't conform to the dominant neoliberal ideology.

"I’ve been thinking about this for a long time," said Dan Harvey, 60, a retiree in one of Hicks’ rentals who is concerned about the traffic he fights on his Harley Davidson and the high cost of living. "A fresh start."

Rising prices, high taxes and his suspicion that the next big earthquake is just a few tremors away convinced the retired engineer to put his South San Jose properties up for sale.

The groundswell to leave Silicon Valley — the place of fortunes, world-changing tech and $2,500 a-month-garage apartments — has been building. For at least the last nine months, the San Francisco metro area has led the nation in the number of residents moving out, according to a survey by online brokerage Redfin.

San Jose real estate agent Sandy Jamison has seen many long-time residents and natives leave the state recently. The lack of available housing, leading to some of the priciest real estate in the country, is driving many from the region, she said.

The landlord and tenants came together through Hick’s rental ads on Craigslist and in the newspaper over the last two decades. They grew close with common bonds of conservative politics, religious faith and motorcycles.

It’s an unlikely collection of 10 men and one woman — a retired engineer, a few military veterans, blue collar workers and others on fixed incomes. Few say they could afford to go it alone in the sky-high housing market in San Jose, where a typical two bedroom rents for about $2,500 a month, far more than what they pay Hicks.

Most of the men are divorced, widowed or never married, and many suffer from health ailments and a crankiness exacerbated by Bay Area traffic, crowding and the state’s liberal policies on crime and immigration.

Hicks, 58, was an engineer and marketing executive at IBM, Xerox and other companies before retiring in his early 40s to raise his daughter from his first marriage.

...

He bought a few investment properties in South San Jose, and looked for long-term returns when he sold them. He kept rents low — between $500 to $1,200 a month for one bedroom — and never raised prices once a tenant signed a lease.

Many of his tenants have been with him for more than a decade.

"We became brothers," said Mike Leyva. The 64-year-old Army veteran and retiree signed a lease in 2004 and never left.

 

And Hicks and his compatriots aren't alone - not by a long shot: A five-county poll conducted for the Silicon Valley Leadership Group and the East Bay Times found that more than one-third of Bay Area apartment renters and one-quarter of residents in their 20s and 30s say they are struggling to afford their housing.

 

Many longtime residents also describe a feeling of alienation that seemed to accompany the tech boom.

According to one real estate agent, the top reasons people leave the Bay Area are as follows: high taxes, cost of living, quality of life from traffic to homelessness, politics and high housing prices. For many long-time residents, she said, "they feel like they don’t belong here any more."

For Hicks, lofty real estate valuations were the last incentive he needed.

In recent years, Hicks began to believe there was a better life outside the valley.

Vaulting real estate prices added incentive. He kept up on tax laws that could maximize the returns on his property. Selling his San Jose rental houses and buying new properties with the proceeds would allow him to defer taxes. “It’s a great financial move,” he said.

Hicks was also moved by discussions with his pastor and sermons at his church, the Vietnamese Living Word Community Church, about Biblical journeys.  His spiritual beliefs guided him to his decision to move with his new wife, Fidessa, 31, and her 8-year-old daughter.  

Cautiously, he broke the news to his friends.

"I was totally shocked," Leyva said. "I thought he was joking me. I had a lot of questions about it."

The tenants who are accompanying Hicks expect to save hundreds of dollars a month in rent when they relocated to Colorado...

QUOTE

Levya spent two days researching the move and became convinced. He expects to slash his rent from $1,200 to about $800 a month, with more room in a newer home bought by Hicks. “I’m excited,” Leyva said. “It’s going to be a new journey in my life.”

Ed Blomgren, 70, pays $495 a month for one bedroom and a shared bathroom. The retired machinist, a Navy veteran, lives on a fixed income and couldn’t afford market-rate rent.

Blomgren grew up in Colorado, and he welcomes a chance to return to his home state, where he still has family. "At my age," he said, "I think it might be a good thing."

After he finishes selling off his portfolio of Bay Area propterties, Hicks expects to get a much bigger bang for his buck when he buys a new home in Colorado. The median home value in Colorado Springs is $263,000, compared with $1 million for a single family home in San Jose, according to real estate website Zillow.

Hicks' plan, as it stands, is to sell all three homes and buy a half-dozen newer, bigger and cheaper homes in the smaller, mountain town that's home to the US Air Force Academy.

Within a day of listing his Raposa Court home, Hicks had two offers in hand that - like most sales in the area - were well above his $1 million asking price...

Comments

Skateboarder wee-weed up Mon, 02/26/2018 - 21:44 Permalink

Seeing the hipster-ass mvthrfvkers in "the city" makes me puke. Fvck their startups and their fake-ass lives.

Hedgless recommends Texas, yes, and I would be welcome there as I am conservative, respectful, and look people in the eye and smile like a real fvcking human being. You don't get that too much in "the yay" anymore. My sister and bro-in-law live in Dallas, outside the hustle and bustle. It's a pretty wonderful place, but I don't think I can do flatland Texas (no disrespect to all of you great Texans). I need hills...

I always thought the South Bay Area wouldn't change, and I would buy a house. It didn't, all through my childhood, all the way till 2010. Then it started changing slowly, and real freakin fast, and one cannot keep up with the changes anymore.

My friends and I are outpriced out of the neighborhoods we ruled - we had thought we would buy houses where we grew up. We love our home towns, but the whole place sucks now. Some lucky few who managed to strike it rich by working in startups or tech companies bought up all the places. Chinese bought up all the places. Indians bought up all the places. (the new norm is mom and pop both work to pay their $5K/mo mortgage, and junior gets the cradle-to-gravecare - whatever life that is worth)

When I was growing up, I was one of the few people on the local trails - totally owned the local hills. Now it is swamped with jillions of Indians and Chinese without room to park your car.

Time to leave, but Ma and Pa still hold this to be their home, so it is home for me as well.

What a shitshow.

In reply to by wee-weed up

Bes GUS100CORRINA Mon, 02/26/2018 - 23:07 Permalink

blame the fucking

Wall Street bubble for the housing prices across America

you know, the bubble that Trump doesn't see anymore......

yeah that one.

all that free, monopoly, ZIRP, QE, FED, fiat money flowing around the Casinos on Wall Street,

and now re-energized with Trillions in "Tax Cuts for the Oligarchs,

and combined with foreign money

has pushed out the locals

enjoy   :-)

In reply to by GUS100CORRINA

Grave Dancer 22 Bes Tue, 02/27/2018 - 01:58 Permalink

Not just the high home prices.  There is no more political dialogue at all there at all, 100% libturds.  And the place doesn't feel like America any more.  H1-b land.  The future of the Bay Area will be all boring ass Indian and Chinese nerds who worship money and technology, plus a Mexican working class.  

In reply to by Bes

Conscious Reviver Bes Tue, 02/27/2018 - 03:19 Permalink

Actually, blame the ridiculous Fed money printing scam where we pay them interest on money they print up from nothing. Then they use the proceeds to buy the government and protect and expand their racket at all costs.

Seems to me insatiable wealth transfering would get boring to these guys. Maybe there's more to life?? But not for these guys. 

In reply to by Bes

MK ULTRA Alpha Skateboarder Mon, 02/26/2018 - 23:38 Permalink

America is a ghetto. Thanks Obama for ghettoizing America and bankrupting the nation so it couldn't fix anything.

And you mentioned Dallas? It's a shit hole. All of North Texas is red neck white trash haters and they're all Jew crazy and support Israel with unconditional support. They are firm believers in giving America's last dime to Israel.

Most of the entire United States is a GHETTO. The large, mid size and small cities in the US have been flooded with third, fourth, fifth world ghettos.

Foreign and US born foreign are easily recruited into criminal gangs. MS13 is only one small part of the ghettoization of America. Even the universities have been ghettoized. The high schools down to elementary schools have been GHETTOIZED.

America is a ghetto and if you go deep in the woods, the remote of the remote, the government comes for you like Zombies trying to do you in because you're white and free from their BS. Obama was going to punish you for being white and NOT BEING UNDER COMMUNIST GOVERNMENT CONTROL TO BE ABUSED BY OBAMA'S COMMUNIST RACIST ANTI-WHITE GOVERNMENT.

In America, everything has a second class flavor, it's done for equality, the whites must lower themselves into a ghetto culture and live in a ghetto world, because of equality.

Obama interpreted the equality movement as flooding the nation with people of color, radical anti-white ghetto freaks for what purpose, he said it was racial parity, now we know it was for a communist genocide of white Christians just like in Russia 1917. So the Bill Ayers, Alinsky 60's war to kill off white Christians never went away, but was put in play by Obama and the neoliberals(communist) Kind of good we woke up to it, now they whine, they want to kill off whites, well why didn't they say that in the first place, instead of sneaking around to do it.

It didn't work and the communist won't go back into their hole to hide, they won't to fight it out in the streets and on TV. (even television has been ghettoized.)

Is the time ripe for the race war/civil war/revolution? or will we be ghettoized out of existence?

The operative work is Ghettoization of America and Obama is the communist ghettoizer using the cover "community organizer". He used the misery of others to move up and didn't help the people he told to have hope, he used them and they're too stupid to know any better because they're television minds and now they follow the Obama race war and the motive is to blame white people for their misery. That's what Obama is still directing, a race war against whites for a bloody civil war, does that sound like any past president you know?

So when Obama says to the camera, Thank you Obama, claiming he was a great president, it's all because of MSM coverage and pumping a false image of Obama, not because of good results for people or maybe if you call the ghettoization of America a result. Orb maybe flooding the nation with people of color who hate my guts is a great accomplishment or how about bankrupting the nation is a great accomplishment? Please be specific on why Obama, the ghetto community organizer was such a great president?

In reply to by Skateboarder

kumquatsunite MK ULTRA Alpha Tue, 02/27/2018 - 01:22 Permalink

Consider the Absolute Hatred that the media/HollyHateWhites is brewing:

1. The book Brown is the New White tells you what the goal is by the title.

2. Netflix Paid Chris Rock and Dave Chapelle. Rock Opens his "comedy" with hatred for the police and develops it throughout the "comedy hour." Chapelle, at one point in his Netflix "comedy hour," (paraphrased from memory) says "Kill all the white people," and then acts like it's just a joke. Of course, if you said the same thing but said "black people" you'd have to pack up and leave the country to escape the howls for your head.

3. Ava DuVernay, who is called a producer/director and has substituted blacks, including Oprah, for the white Characters in Madeleine L'Engle's Wrinkle In Time, has next up project The Central Park Five. The conclusion from police interviews was that yes, the five black thugs did rape and almost murder the young woman. But due to a black judge, now deceased, and the communist Bill DeBlasio, their convictions have been vacated and they've been "awarded" millions of dollars. Course, not a one of them has taken a Lie Detector test. Hmm.

4. On Netflix, you can also watch Trevor Noah tell you how racist America is. But then he did come here to make a lot of money that he apparently couldn't make in South Africa, where the blacks are rampaging, raping and murdering whites on their isolated farms.

5. Two movies sum up the demanded white genocide: Detroit, a piece of crap movie that only notes at the very end that everything about the police/black situation *police looking for a shooter* is from only Two of the black suspects perspective. No police were, apparently, interviewed for the movie. And you could watch The Birth of a Nation, the new one of course. Where after you see whites slaughtered (women and children, too) by Nat Turner and his crowd (of course, the movie precedes this will all the tropes of black women raped and the deriguer whipping of Nat Turner, you get to see Nat Turner invoke the blacks to go into history and do more of the murdering.

But hey, to say this isn't acceptable is just so racist, isn't it?

In reply to by MK ULTRA Alpha

Blurb kumquatsunite Tue, 02/27/2018 - 02:23 Permalink

You know here's the thing. Everyone with a brain capable of thinking knows these things. The hope lies in this: millions of little decisions the effects of which move the country in keeping with the will of the majority. Also remember that the incompetent, lazy, and uneducated don't commonly or make much money, and thus won't have much power for long. They can fume, have their TV shows, etc. but in the end they can't take my wealth. I think the current anti-white sentiment in the USA is a kind of salve to assuage the unassailable fact that some groups are poor and with the decline of upward mobility, are most likely going to stay that way for a long time. They get it, don't like it, and they need fantasy (the abolition of white power in the USA, where whites are not only a majority but hold most of the wealth) in order for them to swallow that news.

The media need to make a buck, but the uneducated 'browns' can't understand that they are being duped and patronized. 

So ignore that noise. Remember: you can't reverse gravity no matter how strongly you may doubt its existence. 

In reply to by kumquatsunite

YouJustCouldnt MK ULTRA Alpha Tue, 02/27/2018 - 03:51 Permalink

Ditto for Europe. London has the highest record for knife crime in Europe as Blair opened to flood gates to anyone and everyone without so much as a criminal background check. Now you have over 350 identified gangs all competing for their slice of the pie from drugs, prostitution and modern day slavery. Vicious Somali gangs fighting vicious Turkish gangs, vicious Kurdish gangs fighting vicious Albanian gangs. etc., etc., etc.. Then throw into that potent mix millions of Muslims with their strict adherence to 7th century laws. Yeah, diversity is our fucking strength. 

In reply to by MK ULTRA Alpha

I Write Code hedgeless_horseman Mon, 02/26/2018 - 22:41 Permalink

It's cheap enough but I'd prefer a couple more feet above sea level, y'know?  I mean, Galveston ...

Actually, a good ten-meter tidal wave just might wash out a lot of Facetube and other offices built on Palo Alto mud flats and a fair number of $$$$$ homes ... hard to generate in that shallow bay but it could happen.

In reply to by hedgeless_horseman

TrustbutVerify Mon, 02/26/2018 - 21:30 Permalink

How many that are leaving voted for the policies that have ruined their city and, more broadly, their state? 

Now they're moving away to do the same thing to other states and regions.  Maybe inter-state visas and passports are needed.  

Look at Venezuela!  Venezuelans voted for what they've ended up with.  Coastal California is no different in its politics.   

PT TrustbutVerify Mon, 02/26/2018 - 21:39 Permalink

A lot of truth in what you say but:

If you first vote when you are 18 and continue until you die at 80 then that is about 16 times you had an opportunity to change / prevent a bad decision.  What were those 16 decisions you tried to change / prevent?  Even if you voted in the right direction, did you succeed?  How many other decisions were made in that time?  Did you get an opportunity to change any of those decisions?  In the lead-up to each election, what decisions was the media promoting?  What decisions were actually important?

Roughly speaking, if voting worked then you wouldn't need lobbyists.

In reply to by TrustbutVerify