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> The houses sit empty Who can afford to let a > $1 million USD asset sit idle? There is an opportunity cost to that. You also have to service any outstandin

> The houses sit empty Who can afford to let a > $1 million USD asset sit idle? There is an opportunity cost to that. You also have to service any outstanding debt on the property and pay the property taxes. There are also life changes(i.e. retirement, illness, children, etc) which force relocations. The owner could try renting the unit, but that involves risk and still has issues with opportunity cost. What if the home sits idle and the owner relies on the income to afford a rental in another market?

teeray 4y ago
> Who can afford to let a > $1 million USD asset sit idle? People that own >$1 million USD assets. Some of these folks have multi-million dollar properties that they only actually use for a week or two per year.
almost_usual 4y ago
I know someone who had a 2m+ home sit empty in SF for years. A 2m+ home in the Peninsula where the tenants stopped paying rent during COVID and still live there today. The tenant not paying rent annoys them but they’re not financially impacted by any of it. They own a business and make enough money that it’s not worth their time or energy to deal it. They have no connection to tech and work in a niche industry.
- 01100011 4y ago
  That's great. That's one data point. Most folks owning homes in CA aren't rich beyond their real estate.
- cudgy 4y ago
  Does this person have any other rentals? Sound like a good deal for the renter to have a landlord that doesn’t care if they pay rent.
rcpt 4y ago
Since he's talking about California the answer is boomers. They bought decades ago and locked in miniscule property tax rates which don't go up because of Prop 13.
- 01100011 4y ago
  Right, but those boomers want to sell so they can buy their dream house on a golf course in AZ. Their clock is ticking and their not going to stay in CA wasting their retirements.
  - deleted 4y ago
    [deleted]

teeray 4y ago

> Who can afford to let a > $1 million USD asset sit idle? People that own >$1 million USD assets. Some of these folks have multi-million dollar properties that they only actually use for a week or two per year.

almost_usual 4y ago

I know someone who had a 2m+ home sit empty in SF for years. A 2m+ home in the Peninsula where the tenants stopped paying rent during COVID and still live there today. The tenant not paying rent annoys them but they’re not financially impacted by any of it. They own a business and make enough money that it’s not worth their time or energy to deal it. They have no connection to tech and work in a niche industry.

01100011 4y ago
That's great. That's one data point. Most folks owning homes in CA aren't rich beyond their real estate.
cudgy 4y ago
Does this person have any other rentals? Sound like a good deal for the renter to have a landlord that doesn’t care if they pay rent.

rcpt 4y ago

Since he's talking about California the answer is boomers. They bought decades ago and locked in miniscule property tax rates which don't go up because of Prop 13.

01100011 4y ago
Right, but those boomers want to sell so they can buy their dream house on a golf course in AZ. Their clock is ticking and their not going to stay in CA wasting their retirements.
- deleted 4y ago
  [deleted]