Uber's IPO millionaires could buy every home for sale in the Bay Area

CNET | 5/21/2019 | Dara Kerr
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This uninhabitable house for sale in San Francisco is in such disrepair that potential buyers can't enter the property, and it comes with a demolition permit. It hit the market in May with a price tag of $2.5 million.

Bay Area residents could get a lot of new wealthy neighbors courtesy of Uber's IPO.

Ride-hailing - Company - Month - Employees - Uber

When the ride-hailing company went public earlier this month its current and former employees amassed roughly $3.25 billion in Uber stock -- that's enough money to buy every home for sale in San Francisco, Berkeley and Oakland, according to real estate brokerage Redfin. And there'd still be half a billion dollars left over.

Redfin used Uber's pre-IPO price of $45 per share to run its numbers. The company's stock has since fallen below that level and currently changes hands at about $41 per share.

Analysis - Sense - Wealth - Uber - IPO

The analysis is meant to give a sense of how much wealth has been created by Uber's IPO and how it might affect the housing market, Redfin's chief economist, Daryl Fairweather, said in an interview.

"This has really put a new jolt into the San Francisco housing market where otherwise it might have stabilized," Fairweather said. "San Francisco is seeing double digit price growth, which is pretty remarkable."

San - Francisco - Housing - Market - US

San Francisco is the most expensive large housing market in the US, with an average home costing $1.43 million as of April, according to Redfin. The high prices may be good news for existing homeowners, but they're likely bad news for everyone else who isn't expecting a Silicon Valley IPO windfall.

"San Francisco has been grappling with this increase of prosperity for a long time," Fairweather said. "This is only going to make the situation worse."

Uber - San - Companies - Stock - Market

And Uber is only one of several San Francisco-based companies hitting the stock market this year. Lyft and Pinterest have...
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