Why Real Estate Is Spiking Near The New Apple Campus: An Expert's Opinion

SILICON VALLEY, CA -- Cupertino has always been home to Apple, and it will remain so when the maker of iPhones, Mac computers and other popular personal electronic devices finishes moving into its giant new headquarters.

As the years-long construction of Apple Park nears completion -- the process of moving some 12,000 employees is already under way -- Patch spoke with a real estate expert who foresees many short- and long-term impacts on the city of Cupertino and its neighboring communities.

“Real estate developments have spiked in Cupertino, and surrounding areas such as San Jose, and West San Jose,” says Allen Shayanfekr, a millennial real estate expert who is the founder and CEO of Sharestates, a real estate investment company. “This increase can be attributed to the influx of high-income individuals and Apple employees wanting to live closer to the new headquarters.”

Developers anticipate a higher demand for rentals and owners may start charging more to renters due to the change in the area, pricing some tenants out, Shayanfekr told Patch. More luxury developments may also start to crop up as a result, he said.

It would appear that change is already afoot when it comes to the value of the area’s single-family properties. Within the last 30 days, almost 60 homes -- mostly in Sunnyvale and Cupertino -- have sold for $200,000 or more over the asking price, The Mercury News reported this week.

Real estate data firm Core Logic reported a 22-percent increase in the number of homes and condos sold in Santa Clara County over a one-month period between April and May of this year, with the median sales price hitting $940,000 in May. According to Core Logic, 1,942 homes changed hands in May in the county, compared to 1,590 in April. The number of homes sold in May in Santa Clara County was the greatest among counties throughout the San Francisco Bay Area.

In addition to the rising value of residential property in the surrounding neighborhoods, Shayanfekr said locals can expect a shift in the retail economy.

• MORE ABOUT APPLE PARK: Apple Employees Begin Working From Massive New Silicon Valley Campus

“As the tech population first floods in, there will be an increase in retail commercial development,” Shayanfekr said. “The Apple brand will likely attract interested civilians from all over the world. This increased demand for goods and services will drive prices up for local businesses.”

Shayanfekr foresees increased traffic and activity in the area, as well as other tech businesses following Apple’s lead.

Where does that leave current residents?

“[They] are likely to cash out and move elsewhere once Apple Park is completed,” Shayanfekr says.

Readers: Do you live or work near the new Apple Park? If so, we want to know what you think about all this. Tell us in the comments below.

Photo via Guy Kilroy, myguysmoving.com/Flickr Creative Commons