Redfin Report: Together, Uber Employees Could Buy Every Single Home For Sale in San Francisco, Oakland and Berkeley with their IPO Cash

SEATTLE, April 26, 2019 /PRNewswire/ -- (NASDAQ: RDFN) -- With the wealth created through Uber's upcoming IPO, current and former employees could purchase every single home for sale in San Francisco, Oakland and Berkeley in cash, according to a new report from Redfin (www.redfin.com), the tech-powered real estate brokerage.

Redfin's calculation is based on an IPO price of $47 per share, the midpoint of the ridehailing company's proposed price range of $44 to $50 per share. Using the $47-per-share price, current and former employees hold roughly $3.32 billion worth of stock in the San Francisco-based company.

If all $3.32 billion of the total stock wealth were to go into the San Francisco Bay Area real estate market once the IPO lockup period ends, current and former Uber employees could hypothetically buy:

• All 1,612 homes for sale in San Francisco, Oakland and Berkeley combined for $2.9 billion.
• All 853 homes for sale in the city of San Francisco for $2.2 billion, and have $1.1 billion left over.
• All 1,272 homes for sale in the city of San Jose for $1.47 billion, and have nearly $1.9 billion left over.
• All 643 homes for sale in the city of Oakland for $510.1 million.
• All 116 homes for sale in the city of Berkeley for $165 million.
• Nearly the entire bottom half of homes for sale by list price—7,551 homes—across the Bay Area (the San Jose-San Francisco-Oakland combined statistical area) for $3.32 billion.
• The top 2% of homes for sale by list price—223 homes—in the entire Bay Area for $3.32 billion.

Lyft, the other big ridehailing business based in San Francisco, went public at the end of March. At that time, Redfin calculated that current and former Lyft employees could have purchased every home for sale in the city of San Francisco based on the company's IPO price.

The San Francisco metro area, where the typical home sold for $1.4 million in March, is already the most expensive large housing market in the country, and San Jose, where the median home price is $1.1 million, isn't far behind. The wealth coming down the pipeline from this year's Bay Area tech IPOs could put further pressure on an area where housing is already unaffordable for many of its residents: Just 2.6 percent of homes in the San Francisco metro are affordable on the area's median household income of $101,714.

"The Uber IPO, along with the other large tech companies going public this year, will have a large and lasting impact on Bay Area real estate," said Redfin chief economist Daryl Fairweather. "Given the existing shortage of housing, competition among newly wealthy buyers will drive up prices. Less fortunate locals will move inland or out of state in search of affordable homes and lifestyles."

To read the report, complete with a full methodology, please visit: https://www.redfin.com/blog/uber-ipo-san-francisco-real-estate/.

About Redfin
Redfin (www.redfin.com) is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and Canada. The company has closed more than $85 billion in home sales.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, subscribe here. To view Redfin's press center, click here.

SOURCE Redfin

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