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Also known as supply vs demand... Bay area is infamous for many housing supply constraints in regulations. As far as loans increasing the demand side, banks

by mahyarm 10y ago

Also known as supply vs demand... Bay area is infamous for many housing supply constraints in regulations. As far as loans increasing the demand side, banks can be pretty strict with %20 down payment restrictions. Which is why once houses go out of the dual income high earner price range ($1-1.5 million), you start seeing it overflow to other less desirable regions in the bay area.

branchless 10y ago
But the creation of credit costs nothing therefore rent extraction can scale up to match productivity gains in a heartbeat.
- Tsagadai 10y ago
  Which given that land is limited (you can only go so far out before you are in another place) then the price of the building will increase. It is possible to end up in a situation where even very wealthy workers cannot afford to rent within hours of a city. Sydney, Melbourne, London and Vancouver are examples where this is starting to happen. it has not happened yet but it is certainly pricing many out at lower ends of the income scale.
  - branchless 10y ago
    Exactly. Go work on your productivity. The rentiers are waiting.