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> those with existing SFH will probably see their net worth skyrocket. depends. It would go up for some in convenient locations but as soon as new apartments s
by nerfhammer 8y ago
> those with existing SFH will probably see their net worth skyrocket.
depends. It would go up for some in convenient locations but as soon as new apartments start going on the market they'll have to compete on price and prices will start to fall.
- mywittyname 8y agoThe value driver of the SFH is that is can be converted at any time into an n-family condo. So if n * avg_condo_value - development_costs > current_home_value, then the homeowner comes out ahead.
- nerfhammer 8y agoRight, but not every SFH will not be replaced. You're going to start actually satisfying demand, and then prices will fall across the board.
- mywittyname 8y agoNormally, I'd agree, but newcomers to SF have outstripped housing development by a large degree for something like two decades at this point. So the amount of new construction you'd need to satisfy current demand would be staggering. Not to mention, a drop in housing prices will make the region even more appealing.