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I don't think that SF has a problem attracting demand. Neither do Manhattan or Brooklyn for that matter -- both are prohibitively expensive at this point unless

by exelius 12y ago

I don't think that SF has a problem attracting demand. Neither do Manhattan or Brooklyn for that matter -- both are prohibitively expensive at this point unless you're a millionaire. Manhattan demand is a bit different in that it's driven globally: a Manhattan apartment (and one in London, and one in Hong Kong) is seen as a must-have among the newly-wealthy Chinese upper class. You know how there are now more millionaires in China than in the US? They all have a Manhattan apartment that they rarely use. SF doesn't quite have that issue yet -- but IMO housing prices are a big reason why startups are looking outside the bay area more seriously these days.

deleted 12y ago
[deleted]
dasil003 12y ago
> I don't think that SF has a problem attracting demand. It's not a binary proposition though. There's always an equilibrium, and it's difficult to determine how any given change might affect it.
- exelius 12y ago
  You're right, but given the prices in the SF market, there are only so many people able to buy a $1 million+ home. It wouldn't be hard to increase the supply to the point where prices start to decrease significantly, especially if you start to build a decent inventory of non-luxury units (not everyone needs or can afford a doorman).