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None of those are examples of the real estate economy failing though... Let alone failing because it became too profitable. And even if they were, you're pushin
by ravitation 9y ago
None of those are examples of the real estate economy failing though... Let alone failing because it became too profitable. And even if they were, you're pushing the definition of a profitable real estate economy in the first place.
- dredmorbius 9y agoThe rents-extraction can lead to failures by crowding out entrepreneurial activity. Take a look at what's brewing in the San Francisco Bay Area presently. (Or Seattle, NYC, Vancouver, London, etc.) It's not hit a precipitating point, yet ... but if you look at the formation of the tech industry in Los Angeles (aerospace and RAND especially post WWII) and Sunnyvale (1950s, 1960s), a large appeal was space and cost, as compared with East Coast centres, especially NYC and Boston.
- ravitation 9y agoThe San Francisco Bay Are real estate market hasn't failed... You can't use its hypothetical future failure as an example... The formation of new technical hubs is not a good indicator that the real estate market is failing or will fail.