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Unwillingness to increase supply is a far bigger problem in the bay area housing market than foreign money. The California Legislative Analyst's Office calcula
by khuey 11y ago
Unwillingness to increase supply is a far bigger problem in the bay area housing market than foreign money. The California Legislative Analyst's Office calculated that to maintain the 1980 level of housing affordability(and housing was already expensive in many California of it then) would have required building 100,000 more homes per year, almost all of it in the coastal regions. A few wealthy foreign property owners are a drop in the bucket compared to a structural deficit of 3.5 million homes.
- seiji 11y agoA few wealthy foreign property owners are a drop in the bucket compared to a structural deficit of 3.5 million homes. Yes, you found the exact problem. But, with such a current high demand, all sales end up going to these wealthy few since supply is so restricted. We see it every day. Multi-million dollar condos and houses going for 150% to 200% over asking price (in cash, paid in full at closing, either by wire or by literal black duffel bags full of currency delivered by their proxy lawyer who doesn't ask too many questions). Bidding wars for simple apartments. If you try to buy housing as a worker (by saving from your paychecks to obtain a downpayment), you'll always be out priced by people who can just drop 20x your net worth on a whim—in cash. If only we could tear down the sunset districts and replace them with more modern high density housing plus a real transit system. Heck, if only we could step back and get a real transit system between San Jose and SF at all. It shouldn't take 90 minutes to go 40 miles on dedicated track. A 90 minute commute (if you're not rush-hour bound) is the ultimate killer of morale.