Here's a concise explanation: SF is close (enough) to East Asia and is a convenient sink for the money laundering / "investment" you can do through real estate.

Here's a concise explanation: SF is close (enough) to East Asia and is a convenient sink for the money laundering / "investment" you can do through real estate. Similarly, Miami in the 80s was close enough to South America to be an easy sink for the money laundering / "investment" you can do through real estate. When ~1/3 of new construction is unoccupied & held as investment it sure seems like the driving force at the margin. http://www.48hills.org/2015/01/27/sf-planners-yawn-vacant-units/ http://www.48hills.org/2015/01/27/sf-planners-yawn-vacant-un...