Isn’t that bullish for landlords? No down payment means people have to keep renting. They have to live somewhere.
Sure, we owners may benefit in the ST from that and the non building due to NIMBY folks but LT what happens if this area gets so expensive that ultimately we start losing wholesale companies and people to the Seattles and Sacramentos of the world? Or to Nevada? When people are buying homes, there are positive spin off effects. Places like Home Depot and Lowe’s do well. Contractors and plumbers have work, so you get more expansion with people in jobs and the whole economy is humming along. Ultimately, we don’t want a contraction in the economy that causes major ripples.
It will be interesting to see if demand is actually pinched off to nothing in the rest of the country where home prices are much lower (and affordable). Come on, interest rates are still historically low by all accounts.
Music to my ears. If not for the outsize appreciation and prop 13, the ridiculously low cap rate means I should have sold the SV’s SFH. I need rent to be stable or increasing to justify holding.
Seattle’s % increase was bigger than ours… Portland was bigger too. As they get more expensive, then it makes the bay area seem not as bad.
True, so like water ultimately reaching the same equilibrium level… I wish I could say the difference is then the RAIN factor (but it ain’t like we are bone dry down here lately…)
I must admit, the one time I went up there it was nice (granted no rain). I just can’t get my arms around living in constant rain and cloudy gloom a big chunk of the year…
If you’re from somewhere with gloom and snow in winter, then gloom and rain is an upgrade.