🎁The Wait Is Over, The Bay Lights Are Back

Driving the news: The iconic Bay Lights art installation is making a triumphant comeback to the western span of the Bay Bridge. Crews have begun installing 50,000 LED lights, a significant upgrade from the original display that went dark nearly two years ago.

Details: The new display features double the lights compared to the original, designed for visibility across San Francisco, Marin, and the East Bay. Engineered for durability, the lights are built to withstand harsh conditions like wind, fog, and exhaust, with a lifespan extending through 2035.

Why it matters: The Bay Lights have long been a symbol of creativity and unity for the Bay Area, drawing both locals and visitors to admire the shimmering patterns across the bridge.

Its return not only restores a beloved landmark but also celebrates the region’s resilience and innovation. For local communities, the lights represent pride and a renewed sense of vibrancy for the skyline.

The big picture: The installation’s return highlights the power of public support and artistic vision. By doubling the lights and improving durability, the Bay Lights reclaims its place as a global example of large-scale public art, putting the Bay Area at the forefront of merging technology and art.

What’s next: As crews complete the installation, the public can look forward to celebration events to mark the return of the Bay Lights.

The bottom line: The Bay Lights’ return underscores the enduring spirit of the Bay Area, blending art, community, and innovation. This dazzling display promises to illuminate not just the bridge but the hearts of all who see it.

🤩A Brighter Job Horizon: Bay Area Businesses Ready to Add Talent

Driving the news: After a challenging period marked by widespread layoffs, especially in the tech sector, the hiring climate in the Bay Area is improving. A survey by employment agency Robert Half reveals that 67% of companies in the region plan to hire for permanent roles in the first half of 2025, a significant jump from 56% last year.

Details:

• Permanent Roles: Of the companies hiring, 67% aim to expand team sizes, while 28% are focused on filling vacant positions.

• Motivations for Hiring: 67% cite company growth, 52% attribute hiring to new projects, and 35% report employee turnover as a driver.

• Contract Work: 61% of San Francisco-area businesses plan to increase contract staffing early next year.

• Tech Sector Momentum: Key areas of demand include AI, machine learning, and data-centric roles, fueled by pent-up tech initiatives.

By the numbers: Salesforce plans to hire 1,400 salespeople globally to promote new AI products. Okta is expanding its sales and marketing teams to sustain growth. C3.ai and Zscaler will continue growing sales forces, driven by strong financial performances. Workday and Veeva Systems intend to boost headcount across roles like product development, cybersecurity, and engineering, with a focus on AI-driven initiatives.

Why it matters: The Bay Area’s hiring rebound signals a revitalization of its job market, especially in tech, a sector integral to the region’s economy. The push to fill roles in AI and machine learning highlights the area’s role in shaping emerging technologies, benefiting workers and local communities alike.

The big picture: This hiring resurgence aligns with growing national optimism, as 63% of companies across the U.S. also plan to hire in 2025, up from 57% in 2024. The Bay Area remains a vital hub for innovation and employment opportunities.

What’s next: As companies ramp up hiring, job seekers should sharpen their skills in high-demand fields like AI, machine learning, and data analytics. Meanwhile, organizations should prepare to compete for top talent as demand for skilled professionals rises.

The bottom line: The Bay Area job market is poised for a stronger 2025, with expanded hiring in tech and beyond providing a welcome boost for workers and the local economy.

🎥 BIG Changes Coming to Downtown San Francisco in 2025

Is 2025 the year for downtown San Francisco?

While downtown SF has faced post-pandemic challenges, major developments are transforming the area: the billion-dollar investment in the TransAmerica Pyramid, innovative retail revival programs offering 3 months free rent, luxury brands expanding their presence in Union Square, and new community initiatives like Downtown First Thursdays drawing thousands of visitors.

Discover how these ambitious plans and creative strategiesare reshaping downtown SF's path to recovery.

🏠Is the Housing Market Stabilizing? What 2025 Means for You

Driving the news: Housing economists predict 2025 will bring modest inventory increases, steady home-price growth, and continued challenges with affordability due to elevated mortgage rates. Here's a look at what's in store.

Details:

• Inventory and Sales: Supply is expected to rise by 11.7%, aided by life events pushing homeowners to sell, and new construction up by 13.8%. Roughly 38% of listings are seeing price reductions as of last week, providing more opportunities for buyers. Although that is down from the same time in 2023 and 2022, showing increased demand at existing price levels and rates.

• Mortgage Rates: Rates are expected to hover in the 6%-6.5% range, with no return to pre-pandemic lows of 4%. Breaking below that range will require substantial cracks in the labor market, which has remained stronger than anticipated notwithstanding an aggressive Federal Reserve.

• Home Prices: National home prices could rise 2.6%-4% by the end of 2025, driven by steady demand and limited affordability.

Why it matters: For potential homebuyers, the slight uptick in inventory may ease competition, especially for first-time buyers who can now take more time to decide. Meanwhile, the continued rise in prices and higher mortgage rates mean affordability challenges will persist, making it crucial for buyers to plan carefully and explore all financing options.

The big picture: The housing market is shifting constantly based on broader economic conditions, including potential impacts from President-elect Donald Trump’s policies on inflation and tariffs. The market is stabilizing compared to recent volatility, but affordability remains a pressing issue for many Americans.

What’s next: Buyers should anticipate more options in 2025, but with elevated rates and prices, it’s essential to balance needs with financial realities. Sellers, especially in the Bay Area, can expect well-priced, and well-prepared properties to sell quickly, but at figures below the peak pandemic levels.

The bottom line: The 2025 housing market is shaping up to be a mixed bag, with incremental improvements in inventory and sales but persistent affordability concerns. Thoughtful planning and flexibility will be key for both buyers and sellers navigating the year ahead.

📊 Market Trends

San Francisco’s housing market is bucking national inventory trends, while Marin is more consistent with inventory growth nationwide.

Nationwide, existing home inventory is up 26% compared to the same time last year, and is approaching pre-pandemic levels.

Not so in San Francisco. There are fewer single family homes available for sale in San Francisco today than at any time in the past four years. And condo inventory remains relatively flat compared to each of the past two years, and is well below 2020 levels. The inventory surge we saw at the onset of the pandemic has largely subsided, and has pushed home prices up across categories year over year.

In contrast, inventory in Marin County, while not surging to levels that would cause concerns for a potential price crash, is up compared to the same time each of the past four years, consistent with what we’re seeing nationwide.  Greater inventory has relieved unrelenting price pressure in Marin, with price per foot down 0.9% YTD compared to the same period in 2023. Median sale prices over that same period, however, rose 4.9%, and average sale prices rose 2.1%.

As always, I’ll keep an eye on the data so you don’t have to. Reach out with any questions.

🗞️ In Other News…

• Turtle Tower Bistro coming to the Financial District

• San Francisco housing is second only to Brooklyn and Boston in a surprising category

• S.F. rates its parks from best to worst based on 300 criteria. Here’s how each park scores

• Popular San Francisco movie theater slated to expand in Bay Area