How will be apples expansion impact cupertino real estate?

Asked by curious, Sunnyvale, CA Tue Jun 4, 2013

Apple disclosed some details of its impact study today. It is adding about 7.5k new jobs. How will the influx of so many people affect Cupertino. Will it still be desirable? Or will it make it real estate even more expensive. Have Apples growth plan been already factored in current home prices?

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12
Sam Shueh, , San Jose, CA
Wed Aug 7, 2013
Do you notice the construction of new apartments on Wolf and Stevens Creek Blvd? It will create more traffic and housing issues in the area. I hate to find out how the schools can coup with the already overcrowded situation. yes, rents will go up and the demand for housing will be stronger.

I went to MLS looking at historical home prices, I learned Cupertino homes were less expensive than area around King and Story Rd before 1965. Price started taking off in the late 70s and seemed to follow the rise and demise of the tech jobs. It was hit very hard in the early 2000s by the dot com. Keep in mind Apple had several layoffs in the 80s and that affected employees ability to pay mortgages. The projection of jobs assumed the growth will go on with minimum competition. It remains to be seen if all Appl jobs are kept in a pricey area not some place else.

The new campus is built around the old Tandem Computer campus which enjoyed for sometime one of the most reliable ATM computer systems.

Sam Shueh
Keller Williams Cupertino Realty
0 votes
Sam Shueh, , San Jose, CA
Wed Aug 7, 2013
Do you notice the construction of new apartments on Wolf and Stevens Creek Blvd? It will create more traffic and housing issues in the area. I hate to find out how the schools can coup with the already overcrowded situation. yes, rents will go up and the demand for housing will be stronger.

I went to MLS looking at historical home prices, I learned Cupertino homes were less expensive than area around King and Story Rd before 1965. Price started taking off in the late 70s and seemed to follow the rise and demise of the tech jobs. It was hit very hard in the early 2000s by the dot com. Keep in mind Apple had several layoffs in the 80s and that affected employees ability to pay mortgages. The projection of jobs assumed the growth will go on with minimum competition. It remains to be seen if all Appl jobs are kept a pricey area not some place else.

The new campus is built around the old Tandem Computer campus which enjoyed for sometime one of the most reliable ATM computer systems.

Sam Shueh
Keller Williams Cupertino Realty
0 votes
Sam Shueh, , San Jose, CA
Wed Aug 7, 2013
Do you notice the construction of new apartments on Wolf and Stevens Creek Blvd? It will create more traffic and housing issues in the area. I hate to find out how the schools can coup with the already overcrowded situation. yes, rents will go up and the demand for housing will be stronger.

I went to MLS looking at historical home prices, I learned Cupertino homes were less expensive than area around King and Story Rd before 1965. Price started taking off in the late 70s and seemed to follow the rise and demise of the tech jobs. It was hit very hard in the early 2000s by the dot com. Keep in mind Apple had several layoffs in the 80s and that affected employees ability to pay mortgages. The projection of jobs assumed the growth will go on with minimum competition. It remains to be seen if all jobs are kept in the area.

The new campus is built around the old Tandem Computer campus which enjoyed for sometime one of the most reliable ATM computer systems.

Sam Shueh
Keller Williams Cupertino Realty
0 votes
Sam Shueh, , San Jose, CA
Wed Aug 7, 2013
Do you notice the construction of new apartments on Wolf and Stevens Creek Blvd? It will crease more traffic and housing issues in the area. I hate to find out how the schools can coup with the overcrowded situation. yes, rents will go up and the demand for housing is there.

I went to MLS looking at historical home prices, I learned Cupertino homes were less expensive than area around King and Story Rd before 1965. Price started taking off in the late 70s and seemed to follow the rise and demise of the tech jobs. It was hit very hard in the early 2000s by the dot com. Keep in mind Apple had several layoffs in the 80s and that affected employees ability to pay mortgages. The projection of jobs assumed the growth will go on with minimum competition. It remains to be seen if all jobs are kept in the area.

The new campus is built around the old Tandem Computer campus which enjoyed for sometime one of the most reliable ATM computer systems.

Sam Shueh
Keller Williams Cupertino Realty
0 votes
Betty, Agent, Saratoga, CA
Mon Jul 22, 2013
Their expansion is nothing but bad news---more traffice, more congested roads, more crowded schools. This is going to make people look elsewhere for a nice place to live. Sure we can sell a house, but we need to think about the environment that people have to live in. It's not all about realtors. Just remember that.
0 votes
Robert Lei, Agent, Cupertino, CA
Thu Jun 20, 2013
Apples expansion will have a positive impact on home values in and around Cupertino/Sunnyvale/SantaClara and surrounding areas. I've been helping Apple employees look for real estate and one of their considerations is commute to their office. Even some of my non-Apple buyers specifically are looking to buy property near the proposed new high-tech "space ship" campus because they want to get in early and enjoy the expected appreciation that will come.

Yes, the population of techies will jump in the neighborhood and extra traffic will result, but most people feel it will be a boost to prices not a drag. High traffic is an indication of high demand, such as Manhattan New York real estate and San Francisco real estate.
0 votes
Robert, do you have good ideas of a good place to post a house with a very large lot/yard, friendly to pets, and everything fully new/just built. I think it would be suitable for Apple employees and have posted to Craigslist and Zillow but wondered if there are other ways to let Apple employees know. If so, could you email me at 1140northumberland@gmail.com? Thanks!
Flag Sun Dec 6, 2015
Juliana Lee, Agent, Palo Alto, CA
Tue Jun 18, 2013
If you look for areas which have not recovered from the 2008 economic downturn, South San Jose and Morgan Hill are prominent in Silicon Valley. The increase in employment at Apple may actually have a bigger impact on those home prices than home prices in Cupertino.

South San Jose real estate statistics http://julianalee.com/san-jose/south-san-jose-statistics.htm
Morgan Hill real estate statistics http://julianalee.com/morgan-hill/morgan-hill-statistics.htm
Cupertino real estate statistics http://julianalee.com/cupertino/cupertino-statistics.htm

Expectations can change the timing of home sales and thus prices to some extent but employment is what really drives them. The two areas, South San Jose and Morgan Hill, are within an easy commute distance. ... Traffic considerations could challenge associating "easy" with commute.

Juliana Lee
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Cell 650-857-1000

Over 20 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
.
Web Reference:  http://julianalee.com
0 votes
Grace Hanamo…, Agent, Cupertino, CA
Thu Jun 6, 2013
Hi Firsttime:

As the others have already mentioned, the home prices within Cupertino are more greatly affected by the quality of the schools than the presence of Apple Computers on site. Also a home price increase that you are suggesting would be predicated on a significant increase in housing demand in the area. That housing demand is unlikely to occur, in my opinion..and here's why:

1. The majority of the Apple employees do NOT live in Cupertino now. Most commute to the campus through private cars or company provided shuttles. You cannot live or work in this area without being forever behind one of the Apple's fleet of "gray lines" (their unmarked, dark gray colored buses and shuttle buses that are a fixture along Stevens Creek, Wolfe Road and Sunnyvale-Saratoga). Why buy in Cupertino, when Apple provides convenient shuttles?
2. Cupertino housing prices are already sky high. Given the demographic of the average Apple employee, buying an older home worth $1.4 million is just not that attractive to the majority of Apple's working population. They will purchase condominiums--there are a LOT of condominiums near Apple campuses that are owned and purchased by Apple employees, but there is not that same demand with homes in the area.

Certainly, there will be a few Apple employees that are interested in buying and living in Cupertino, but because the home prices here are so high now, I don't see a significant population of the workers being able to afford housing in the area for quite some time. What I do see now and what will likely happen in the very near future is that the exit on Wolfe Road in both directions on 280 is likely to become as congested and dangerous as the exit on De Anza Boulevard. Also, traffic along Homestead between Saratoga Sunnyvale and Lawrence Expressway, and in and around Birdland and back along Pruneridge near Tantau is likely to be much more congested and inaccesible. Homes located along Homestead and Pruneridge may actually lose value due to the increased traffic. Having managed properties near Apple, I know that the number one complaint for almost everyone living near Apple concerns traffic and cars. Their employees comprise such a significant influx of traffic daily, that it is the greatest and most oft-noted impact on any neighborhood.

So, for property values, I don't think you'll see much of a housing price increase due Apple's new campus in Cupertino since most of the Apple employees commute into their campus through the "gray lines". You may see some loss of home values for the properties located on or around the main arteries leading into the area (Homestead/Pruneridge/Tantau/Wolfe) due to congestion. Long term, all housing in these areas will continue to rise in value, but I wouldn't expect an abnormal "pop" in pricing from the "spaceship" campus.

Good luck!
0 votes
Martin Ku, Agent, Cupertino, CA
Wed Jun 5, 2013
Not only the expansion will bring more demand to Cupertino, it will impact the surrounding areas such as Santa Clara (Laurelwood). Clearly not every new employee will be able to afford purchasing a home nearby the new HQ, but demand will go up for sure. The influx will also keep the rental demand and it is a no brainer to consider buying vs renting, with the still historic low mortgage rates; though that will go up.
0 votes
Norman Aless…, Agent, San Jose, CA
Wed Jun 5, 2013
I agree with my fellow agents, there is not much more you can say, it is simple supply and demand.
The prices in Cupertino cannot help but go up when there is more demand.
At your service,
Allyson
408-705-6578
allysion@homesbyallyson.com
Certified Distressed Property Expert
0 votes
Susan Merani, Agent, Cupertino, CA
Tue Jun 4, 2013
When homes were originally built in the Cupertino Schools area families moved here specifically for the good schools. As a result of the high performance of these schools it has always been a very desirable area to purchase. When the market is active then homes sell for much higher than in other areas and when market is down then they still hold good value. Dual income families want to raise their families here and if working for Apple then want to live close to job place. A very ideal situation. Most important land value is prime. Cupertino is in the heart of the valley and is saturated with homeowners wanting to raise their kids here. There will always be low inventory and high demand hence prices will rise due to competing buyers. It has been this way for the past 15years with the up/down economy.
0 votes
Terri Vellios, Agent, Campbell, CA
Tue Jun 4, 2013
Current home prices are affected by supply and demand. Buyers determine the price they are willing to pay. Apple is projecting that increase over the next three years. With addition of employes, that means if they don't already live in the valley, then they will be moving here from outside of the valley. This increases the demand on housing near the campus.

Basic supply and demand still prevails. You can compare the Growth of Cisco at First Street. Rivermark has been in high demand and their prices have increased. The school scores in Cupertino add to the demand to live in Cupertino. My projection is yes, it will be desirable and with that prices should increase due to the low supply and high demand.
Web Reference:  http://www.TerriVellios.com
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