A shortage of million-dollar homes may sound like a joke, but in technology hubs like the Silicon Valley it’s no laughing matter.
Over the years advancements in technology have improved our quality of life in a plethora of ways, and what’s most interesting is how technology reaches far beyond the tech world. In particular, there’s an intimate connection between the location of technology companies and real estate values.
The Silicon Valley, which is home to many of the largest companies in the world, including Apple and Google, is also home to some of the highest real estate prices. During the dot-com boom, commercial properties on Sand Hill Road were among the most expensive in the world. And today, million-dollar homes are selling like hot cakes.
According to statistics recently published by RealtyTrac, there were more million-dollar homes sold in the Silicon Valley than any other part of the country. The city of Saratoga registered the highest number of sales with 225 homes sold for $1 million or more in 2012, a 162 percent increase over 2011.
Santa Monica, California is experiencing a similar boom with tech giants scooping up vacant properties left and right. Referred to as Silicon Beach, Santa Monica is home to LivingSocial, Advertising.com, TrueCar and a variety of other companies. To avoid nightmarish traffic in Los Angeles, employees tend to live closer to work and therefore create a higher demand for residential properties in Santa Monica.
Clearly it’s important for real estate professionals to keep an eye on technology because where tech goes, high prices follow.
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