Local building policies are creating a huge problem here, but a big part of what's causing prices to skyrocket is not tech workers, it's foreign investment...

Local building policies are creating a huge problem here, but a big part of what's causing prices to skyrocket is not tech workers, it's foreign investment... for the period April 2013 through March 2014, total international sales have been estimated at $92.2 billion, an increase from the previous period’s level of $68.2 billion [1] And according to some reports, 90% of new condos sold in Miami are to foreign buyers. A soon-to-be-released study by New York consulting firm Integra Realty Resources for the Miami Downtown Development Authority, an economic-development agency, found that about 90% of the buyers of new residential units are from abroad. Despite steadily increasing prices, their appetite doesn't appear to be waning... [2] Rules for purchasing real estate in the US are generally pretty relaxed, and as wealth grows in the rest of the world, people are looking for places to invest (and probably in some cases "hide") their money. The "premier" cities receive the bulk of that investment. Tech workers and private buses do make it more convenient to live in SF and I'm sure it helps drive up the cost of renting in the city, but only 7% of the population of the city works in Tech. There are much bigger forces at play here. [1] http://www.realtor.org/news-releases/2014/07/international-home-buyers-continue-to-invest-in-profitable-us-market-realtors-report http://www.realtor.org/news-releases/2014/07/international-h... [2] http://online.wsj.com/articles/condo-builders-fuel-land-rush-in-miami-1406052941 http://online.wsj.com/articles/condo-builders-fuel-land-rush...