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If you think the tech economy is slowing down, try to rent a home or apartment in San Francisco.
According to a new report from the real estate experts at Nested, the city now has the highest rents around. Not just in the United States – but in the entire world.
It's no doubt largely due to the fact that the tech boom in SF and Silicon Valley is running at full speed, leaving the city with a vacancy rate below 3%.
Nested based its results not on average rents but on the price people pay per square foot. In San Francisco, renters pay $4.75, the highest among more than 100 cities around the world the agency studied.
While San Francisco lies in the epicenter of the tech sector, it's not the only city with soaring rents.
Not surprisingly, Wall Street is getting in on the act. The number of financier-owned rental properties in the United States jumped 60% last year.
You can get in on this act, too.
You see, Wall Street needs data – a lot of data – to help them make their real estate investing decisions.
They're paying top dollar for that data – and most of them are buying it from the tech company I want to tell you about today.
It's already doubled once for my longtime readers.
And it's poised to double again – fast – if you make your move now…
A Personal Connection
My wife and I pay a lot of attention to rental rates here in the Bay Area. After all, we have two daughters, ages 19 and 22, who are in college. When they're done with school, they hope to return here to start their careers.
But the lack of affordable housing – even for recent college grads with advanced degrees – is getting out of hand. According to Nested, the salary needed to pay the average rent here is $86,000. That's a pretty big paycheck for someone right out of college.
So we pay pretty close attention to the data that's out there. We know we'll need it in a few years.
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SF isn't alone here, with rents soaring in nearly every major U.S. city.
No wonder Wall Street is jumping in on the action.
According to a recent Wall Street Journal article, Pretium Partners LLC has raised more than $1 billion so its Progress Residential division could buy 26,000 homes. Plus, the Journal says, bond buyers, wealthy Chinese investors, and pension funds have raised enough money to buy more than $3 billion worth of rental homes over the next several years.
Clearly, all these investors also will need reliable data in order to make smart decisions. They need to be sure their properties have no tax or other liens, that they're in safe areas, and that they have clear titles. Plus, they want accurate data on their renters.
Enter the company that operates what I believe are the deepest and best databases on a wide range of rental units and other real estate.
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.