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Unless the rental market in SF bounces back soon, one would expect a sizable portion of landlords to opt for cashing out. Which, in theory, should increase the
by ilyaeck 6y ago
Unless the rental market in SF bounces back soon, one would expect a sizable portion of landlords to opt for cashing out. Which, in theory, should increase the real estate supply and drive property prices down (AKA rents are a leading indicator of real estate prices). However, real estate seems to be unfazed by that prospect (still very much a bull market), as if it existed in a parallel universe. How to explain this paradox?
- username90 6y agoThey expect rents to bounce back up in a few months, it is a reasonable assumption. The main risk is if most big software companies in SF allow workers to go full remote, then property prices would fall like a rock. But as of now it looks like most companies will just allow partial work from home if any at all.