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This is a separate question. Thanks for your thought. There are other possibilities. Like, say, insatiable demand from around the country and world from people
by abalone 8y ago
This is a separate question. Thanks for your thought. There are other possibilities. Like, say, insatiable demand from around the country and world from people who'd love to move to SF to make their play in the tech boom.
But the fact remains that the tech boom has created a sudden surge in housing demand from people making a lot more than working class folks.
- mixedCase 8y agoIf it's in high demand and supply is being artificially restricted, how would it not be "insatiable"?
- abalone 8y agoInelastic demand. Even with full throttle development, when you have a whole country (nay, world) of tech industry professionals would want to move to the heart of their industry in a boom time, you may not see much movement in price. Consider that all that worldwide demand would need to be soaked up before prices come down to working class affordable levels. We see inelastic demand with disasters as well as economic booms centered around geographic areas. You see something similar in the phenomenon of how adding more lanes to roads doesn't necessarily relieve congestion.