The Bay Area urban workforce is severely underhoused, with estimated shortfalls of ~408,000 units in the region. Average rent in the Bay Area represents 40%+ of average income, compared to 25% nationally. Paradoxically, middle-income represents a superlative customer demographic: we serve young professionals making $50,000 - $120,000 per year such as police officers, teachers, firefighters, healthcare workers, government employees, or nonprofit workers. We have found these incomes to be largely unperturbed by economic cycles and less vulnerable to the disruptions of remote work – because nurses can’t spend the summer working from the Hamptons.
Riaz Capital’s Micro-Studio design easily outperforms the competitive market in leasing and market interest. We began pre-leasing The Linden – our latest micro-studio project – on September 1st. The building achieved 70% leased during pre-leasing, and was fully stabilized within 30 days of opening. Additionally, the average residents earned $75,000 and was 33 years old, representing a more stable demographic than is typically considered in the small-format urban housing market. Whereas luxury properties in the Bay Area have high concentrations in tech and finance occupations, our tenant base includes a much larger proportion of sectors, particularly healthcare, education, and government. This demographic difference has corresponded to vastly different performance during the Covid-19 pandemic, with occupancy averaging 98% throughout the Riaz Capital workforce housing portfolio in Oakland.
