Will Uber’s IPO really boost San Francisco house prices?

Ride-sharing service Uber’s initial public offering is expected to attract high demand from investors. And experts say that could have major implications for home buyers and owners in the San Francisco Bay Area.

For residents of the San Francisco Bay Area and its surrounding communities already swimming in money from Silicon Valley millionaires, these IPOs could make it even more difficult to find a home at an affordable price, especially if these companies’ employees are among their neighbors, according to a recent report by real-estate website Zillow ZG, +0.91% Every 10 Facebook employees living in a given U.S. Census tract at the time of the IPO were associated with an extra 1.

These reports come as Bay Area tech leaders including Facebook FB, +0.90% Chief Executive Mark Zuckerberg and other companies and philanthropists have said they plan to address the housing crisis by raising $500 million to build 8,000 homes, the Wall Street Journal reported. That announcement came just weeks after California Gov. Gavin Newsom asked the private sector to do more to address the home shortage.

Others say that 2019’s IPO boom in Silicon Valley isn’t guaranteed to boost home prices across the San Francisco Bay Area. For starters, the vast amount of wealth generated by these stock offerings will go to investors and not employees. “The estimated value of the companies going public sums up to about $200 billion, and their combined San Francisco workforce probably ranges somewhere from 10,000 to 15,000,” Issi Romem, chief economist at real-estate website Trulia, writes. “But does that mean 15,000 new home buyers will descend on the City of San Francisco in 2019 and spend $200 billion on homes? Certainly not.”

Lyft? Blockbuster IPO? I think you might want to check Lyfts ticker again...

You can always count on the media to find the cloud in every silver lining.

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