Blogging Bayport Alameda

November 10, 2017

Lattes and avocado toast

Filed under: Alameda — Lauren Do @ 6:00 am

Here’s something super depressing for all the renters out there and folks that are unable to afford to purchase a home in this obscene Bay Area housing market.

While microfiching I came across this ad for new homes for sale on Bay Farm for the Garden Isle Townhouses.  Listing price for these new homes? $35,200 to $55,700.
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Recently a unit just sold in Garden Isle for $710,000.

Screen Shot 2017-11-06 at 5.11.51 PM

According to the inflation calculator, if the value of the home remained the same from 1973 until today because Alameda and the Bay Area kept up with enough supply to meet the demand for housing the house should only cost $317,000.

Screen Shot 2017-11-06 at 5.14.54 PM

But instead the value of this 44 year old townhouse has inflated to more than twice its original value.  But yeah, the problem with kids today is that they’re buying too many coffees and avocado toast.

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6 Comments »

  1. I would not want to be a first time home buyer looking in Alameda or the Bay Area generally right now. Few would deny that. On other hand, I’m not sure even the best central planners would bet their careers on a promise that, 44 years later, housing prices in any given location (especially here) would stay precisely in line with general inflation. In fact, according to a quick search on Redfin a similar townhouse at the same Bay Farm development appears to have sold for $309,000 in 2012. I don’t know if that would have been below inflation (as compared with the 1973 price) for that townhouse at that time.

    Comment by MP — November 10, 2017 @ 6:59 am

    • actually, the 2012 one is a bit smaller

      Comment by MP — November 10, 2017 @ 7:25 am

  2. Depressing, I would love to be a home owner and could easily pay the mortgage at 500K (which amounts to my monthly rent payment) but that’s not even around anymore. Many people I know who did not get a house during the economic downturn are now just priced out.

    Comment by michonnekatana — November 10, 2017 @ 1:51 pm

  3. What year was this?

    Comment by Rasheed — November 16, 2017 @ 9:17 am


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