4 ms·
They compared it to the appreciation of real estate, which is wildly divorced from real value. Real-estate prices in say, the Bay Area are driven by legislation
by solosoyokaze 6y ago
They compared it to the appreciation of real estate, which is wildly divorced from real value. Real-estate prices in say, the Bay Area are driven by legislation and speculation. Not actual value. The move to remote works accelerates the discrepancy.
- clpm4j 6y agoIsn't the value of a house what someone is willing to pay for it? There are still a lot of people buying homes in the Bay Area to live in. There are just a lot of rich people in the area, so they're willing to pay the price that the market is setting.
- solosoyokaze 6y ago> Isn't the value of a house what someone is willing to pay for it? This is why it's being compared to crypto currency. The parent comment I was responding to said it's not a fair comparison but "it's worth what someone is willing to pay for it" describes both.
- 6gvONxR4sf7o 6y agoReal estate prices in the Bay Area are also driven by the boatloads of money coming into the area and then not going back out. Our local money supply has gone way up. After all, when local worker salaries go so far up, why wouldn’t the price of goods they’re bidding for go up too?
- alert0 6y agoIt isn't. If you look at residential income properties, they trade around the rents that they command, sometimes with some development potential sprinkled on top.