The Facebook Effect (On Real Estate Prices)

TechCrunch

Four years ago, Facebook announced that they were decamping to Menlo Park from their longstanding home of Palo Alto. Just last month, the company finally cut the ribbons on a beautiful 430,000-square foot building designed by Frank Gehry that is basically one giant, open-air room with an enormous park on top.

The effect on the prices of surrounding real estate has been profound.

If you look at the chart below, published last week in the Almanac and Palo Alto Weekly, the price increases are mainly concentrated in Menlo Park and the neighboring city of East Palo Alto.

home-prices-epa

East Palo Alto is a historically black and now majority Latino community that took shape more than half a century ago through a legacy of racially discriminatory practices in Bay Area housing markets. Given that it is the most affordable community left in Silicon Valley, the city’s economy also supplies low-wage labor to the neighboring affluent suburbs of Palo Alto, Menlo Park and Atherton. It…

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