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Everyone who wasn’t gentrified out of their home agrees it’s great. An economist might foolishly brush off everyone being priced out of their neighborhoods as s
by mrgordon 9y ago
Everyone who wasn’t gentrified out of their home agrees it’s great. An economist might foolishly brush off everyone being priced out of their neighborhoods as simply “externalities” but San Francisco’s politicians thankfully have a more nuanced view of the situation.
And, as ghouse indicates, new housing isn’t subject to rent control so developers make a killing if they get approval.
- almost_usual 9y agoThis addresses active developers who are looking to profit from renters. There are plenty of speculators in the Bay Area who purchase homes without renters or buy them out only to sit on the home and not rent it (since it decreases the value of the home). This isn't a rare thing, there many pre 1978 residences with nobody living in them owned by overseas investors.
- mrgordon 9y agoThis happens to a large degree even without rent control. Miami is full of properties owned by snowbirds who only visit for a few months in the winter or by rich investors who figure a penthouse on South Beach isn’t likely to lose value any time soon. This is especially true of investors from South America who are happy to own a stable investment in US dollars. I’m not convinced it happens so much more in SF to cause the high rents. I think years of building almost nothing after the 208 crisis while jobs exploded is responsible.
- Decade 9y agoThe housing crisis is much, much, much older than the 2008 crisis. The underbuilding has been going on for as long as almost everybody can remember. https://twitter.com/enf/status/764614550750494721 https://twitter.com/enf/status/764614550750494721