Santa Cruz County, Come On Down!

I had sources informing me of deals, nobody paid attention to me.

Too late now.

The article says that the median SFR has gone from 380k to 875k. That would be more than doubled. Close to reality. Some properties that I flipped around 2010 did double since then.

What this story illustrates is that the median county resident’s income is not relevant for prices. If 20% of the workforce work “over the hill” (San Ho), then those 20% can buy, and much less than 20% of the housing stock is offered for sale anyway.

So, $900k for a 2/2 in a mediocre neighborhood is not a puzzle.

What does puzzle me is the rental market:

All 100% of the population need a roof. If 20% can afford to buy, the other 80% are going to rent, and you cannot finance rent payments with cheap interest rates. Homes with 3+ bedrooms are increasingly shared by people who are not traditional families but unrelated adults. Very high demand for small units (0-2 bedrooms).

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Santa Cruz anyone?

I am here. Always seem to be the early bird.

Did you buy houses in Santa Cruz?