Facebook's Real Estate Update

Facebook's Real Estate Update Is the Social Network's IPO Propelling Silicon Valley's Real Estate Market? Facebook's IPO has been a national news topic for months with questions looming as to how all those newly minted Facebook millionaires will start to spend their wealth. With speculation that Facebook and other recent IPOS could con- tribute to another Bay Area housing boom, Zillow looked at the effect of widespread wealth on a local housing market. We've found that median Silicon Valley home values are con- sistently up to 15 times that of the median U.S. home value, and there has been a recent uptick in million dollar listings in parallel with the Facebook IPO. CURRENT BAY AREA НОМЕ VALUES Berkeley Median Home Value Oakland San Francisco O Alameda Burlingame Redwood City Menlo Park effect Woodside Stanford o Palo Mto Mountain View Los Altos Sunnyvale O Šan Jose Los Altos Hills O Cupertino • Campbell Saratoga O Los Gatos Facebook IPO filing Facebook IPO 100 ANTICIPATING +20% -2012 80 THE NEW MILLIONAIRES 2011 40 With Facebook's IPO and other recent 20 public offerings driving a booming local economy, there has been an upward trend in the proportion of million-dollar homes for sale in Silicon Valley. More specifically, during the 3.5-month span between the Facebook IPO filing and the IPO, the proportion of million-dollar listings in the home- town of Facebook's headquarters -Menlo Park-shot up by 87%. Jan Feb Mar Apr May 100 80 60 +87% 2012 2011 40 20 Feb. 1, 2012 Facebook filed for its Jan Feb Mar Apr May initial public offering (IPO). 100 May 18, 2012 Facebook IPO 80 +26% 60 2012 2011 40 20 Jan Feb Mar Apr May HOW MUCH HOME FORA MILLION? In Menlo Park, $1 million could buy you a 1,580 square foot home, based on median per-square-foot home values in the homes could you buy for that money in other parts of the country? How many "Menlo Park" Seattle 2.5 Homes | "I St. Paul | # Boston 2.6 Homes 6.3 Homes Detroit Chicago 24.3 Homes 5.4 Homes Washington, D.C Boulder 1.9 Homes Menlo Park 1 Home 2.5 Homes Las Vegas 9.6 Homes Mobile 11.3 Homes Tampa 8.7 Homes Dallas 10.9 Homes 2Zillow visual ly Source: Zillow 66 --------- BURLINGAME MENLO PARK Percentage of homes listed over SIM Percentage of homes listed over SIM Percentage of homes listed over $1M PALO ALTO less than $300k $400k - $600k $600k-$800k S1 - $2M over $2M