No inventory and no building!!!
Q: What are some policy changes that could expand the housing supply?
A: At the national level, we could incentivize investors who snapped up homes in 2012 – at the bottom of the housing market – to sell. Many of these homes, especially single-family ones, would otherwise be available stock for first-time homebuyers. So if we gave investors a one-time free pass on capital gains, they might put those homes on the market.
Are you kidding? The lack of supply is why I’m bullish. It’s why the $10k cap on SALT deductions won’t hurt bay area RE.
It’s an interesting idea to give investors an incentive to sell. Personally, I want to keep a home in the bay area. I might move back at some point and RE goes up in value too fast there. I need to keep a foot in the market, so I’m not priced out later. Even if I didn’t get priced out later, I’d probably be disappointed about my options.
Yes, I get it (I am an owner too…) but I really do feel that if you overdo it you could really kill the golden goose if too many people leave for cheaper areas and more and more companies decide to go there instead. We are seeing reports of folks leaving the SV for China and of course your neck of the woods.