Reply to What is stopping NoVA from reaching SV level prices?

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[quote=Anonymous][quote=Anonymous]NoVA is nowhere near SV level prices. Its never going to reach those levels.

1. Geography- SV's geography makes expansion next to impossible -bay, mountains and areas that structurally or environmentally can't be built up enclose a small area. There are few roads in and out of SV so communities further out involve multi hour commutes. Public transportation is limited to BART or Caltrain. NoVA can expand out has better highway access in multiple directions than SV.

2. Rents are outrageous. Inventories for rentals is so low that people are paying more than they would on a 1M+ montage for rentals. There aren't many high rises and many restrictions on building high up unlike NoVA. NOVA and DC have tons of high rises.

3.Lower income and less expensive counties are nearby like PG and MoCo. The commutes to the cheaper areas are still way less than commute from say Gilroy (which now sells in the 1Ms) to SV.

4. Inventory turn over. In SV people age in place because the taxes freeze when you buy your house. They can't afford to move on a fixed income. The weather and one story houses make again in place more practical. Some people do cash out and move to Nevada or Arizona but lots just stay put. In NOVA and the surrounding areas retirees move out sooner. [/quote]

This, especially tax laws, and I also would add a 5th factor.  Innovation - presence of large research institutions like Stanford and Cal that provide supply of highly educated graduates and they do cutting edge tech work on campus as well as joined projects.  Both colleges have top engineering STEM programs decades ago.  Migration of the most talented hungry people from all over the world also fueled innovation and creativity and can do attitude.  This may now be different dynamics with COL detracting a lot of people who didn't cash out big or have much fewer chances. [/quote]

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