Bay Area Building Fewer Housing Units Despite Demand

Interesting. Why?


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Can kill the Goose which lays the golden egg.

That’s what I worry the most about Bay Area. I am thinking if I should spread my eggs a bit and buy something in Seattle…

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Might be more than that. I can pull out of the air a few reasons:
a. Those who have bought at high prices;
b. Those who have HELOC especially if used for consumption;
c. Those who plan to sell and retire elsewhere.

They have real reasons to keep the price up for their financial health.

You should deleverage to sleep better, not continue to match aggressively forward.

The anti growth movement started with the Save the Bay movement in the 60’s…It has kept the population to half of what it would have been…It is powerful. .everyone becomes a nimby after they buy. .Only us few builders actually have tried to fight this juggernaut. …But it is the reason BA real estate prices inexorably go up…Can’t fight it…

So I wonder how long the goose will survive while we are collecting her eggs. Our ecosystem’s network effect is mighty strong. Maybe it won’t matter after all. Or maybe some critical mass of smart people are setting up shops elsewhere like in Seattle or Austin and the next Facebook is built there instead of here. And we will all become frogs in the slowly boiling water.

Good to worry about bad times during good times :grinning: . I diversify into Austin because the Summer weather is like Singapore :grinning: and no :grin: state tax for income… a good place for me to retire but no San Tung :rage: . Seattle is too cold and rainy… can you counter this?