Sacramento housing market booms as tech and office workers remain home during pandemic

Local News

SACRAMENTO, Calif. (KXTL) — The COVID-19 pandemic has changed many things, and in Sacramento, it’s made the housing market red-hot.

The fact that so many tech and office workers can now work remotely means many people are looking to upgrade their homes, with a flood of people moving from the Bay Area to the state’s capital.

They can still make the same high wages, but live in a much bigger house for less money — like Michael Schiesz, who’s moving from Sunnyvale to Placerville.

“When I bought my home, it was on a little two-lane road, and now, it’s four lanes and a big divider and traffic, traffic,” he said.

Schiesz has lived in his Sunnyvale home for more than 40 years, but now, he says he’s just had enough of living in Silicon Valley.

“It’s the fast pace, it’s the traffic, it’s the amount of people,” Schiesz said. “The family aspect and the community aspect has been diminished.”

He and his wife are trying to move to the Placerville area to be close to friends and family, but for months, the few places they could find were being bought up fast.

“The housing market here is absolutely booming,” Melissa Quade, a Coldwell Banker realtor, told FOX40. “We have such a shortage of inventory here.”

Quade said she’s noticed a huge migration from Silicon Valley to the Central Valley, so much that she’s started a Facebook page dedicated for those moving from the Bay Area to Sacramento.

“Especially with the pandemic and the tech industry, a lot of them being authorized to work from home indefinitely,” she said.

But Quade said you don’t have to have Silicon Valley money to remain competitive in Sacramento’s housing market, with factors such as the buyer’s financial qualifications and cash in hand. She added that writing a letter to the seller goes a long way.

If you’re thinking about selling, Quade said, now is the time.

Ironically, Schiesz says it’s been tough to sell his home in Sunnyvale and impossible to imagine a pre-COVID-19 world because of its location, which is less than a mile of “that big Apple complex.”

But he believes his bid on a Placerville home will be accepted just in time.

“A lot of people coming your way,” he said.

Rent is also increasing in Sacramento while decreasing in the Bay Area. A report from Realtor.com shows one-bedroom apartments in San Francisco dropped 31% this year compared to last year. In Sacramento, studio rent prices jumped 16% from 2019.

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