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The thing that makes it a bubble is that the supply is artificially constrained by local zoning laws. Eventually people will be fed up with the situation and th
by fbonetti 8y ago
The thing that makes it a bubble is that the supply is artificially constrained by local zoning laws. Eventually people will be fed up with the situation and they'll vote for a government that'll allow more development, at which point housing prices will plummet.
- idontpost 8y ago> Eventually people will be fed up with the situation and they'll vote for a government that'll allow more development, at which point housing prices will plummet. Clearly you don't live in CA. Homeowners vote more than renters, and they will never intentionally vote for policies that will put them underwater on their own mortgages.
- chipotle_coyote 8y agoThis is one of those bits of common wisdom that falls into the "it's more complicated than that" territory. Zoning laws are a contributing factor, but they are far from the only factor -- and it's a stretch to say that they're the deciding factor. Zoning is an issue. Rent control is an issue. Basic supply and demand is a huge issue that arguably outstrips regulatory roadblocks. Regional geography is also much more of an issue than people sometimes think. Housing prices here are likely to stabilize, but they're not going to start seriously declining unless the job market starts declining, too.
- jjeaff 8y agoAll those other reasons you mentioned are contingent on zoning. Allow highrise apartments anywhere in the Bay area and just watch how fast the buildings go up and the rent goes down.