Board index » Global Property Bubbles » International Property Bubbles

Post new topic Reply to topic  [ 4 posts ] 
Author Message
 Post subject: USA: Housing affordability in California
PostPosted: Mon Oct 02, 2017 7:39 am 
Offline
Nationalised
User avatar

Joined: Jul 26, 2009
Posts: 14892
10 points to keep in mind about housing affordability in California - -> http://www.latimes.com/opinion/op-ed/la ... story.html

Quote:
Many politicians and activists push simplistic solutions when it comes to California’s housing woes. Some promote subsidies; others density. Some sell infill as the solution; others blame everything on the state’s byzantine laws. Maybe I'm getting old, or maybe the election of 2016 just reminded me to beware of politicians appealing to the masses with buzzwords. We live in a complex world, and remedies for complex problems such as housing are complex.

Nuance and straight talk will help us solve this crisis. With that in mind, I crafted these 10 points to inform the debate.
<snip>
7. People want to live where there are jobs and culture. For years, government has tried to subsidize housing in expensive areas. But rather than bring housing where there are jobs, maybe we should try to foster more jobs where there is abundant housing. Making inexpensive areas more livable would also help bridge the gap between rich and poor in California. If an employer is willing to relocate to an area with cheap housing and core infrastructure (transit, water, healthcare), then our policies should facilitate that.

8. Housing in Manhattan, San Francisco, Silicon Valley and many Los Angeles neighborhoods has become a Veblen good. Like a Fendi purse, the more exclusive some goods appear and the more expensive their price, the more desirable they become to certain consumers. The people engaging in absurd bidding wars, driving up the cost of real estate in tony neighborhoods, are not dissuaded by stratospheric prices. In fact, it makes those neighborhoods even more attractive to some.

9. One factor in skyrocketing home prices in the last decade has been the Federal Reserve. It has been creating trillions of dollars to buy government bonds and prop up the economy. That makes the value of dollars (and interest rates) sink and the value of assets (such as houses) rise. Programs such as housing subsidies that reduce costs are just a drop when compared to the immense bucketful of money that has increased asset prices. Activists should start focusing some of their attention on national monetary policy.

10. While having a roof over your head is a human right, being hip is not. Even during times of unprecedented price increases, there are often bargains to be had in places that are a little less trendy. Some, but not all, of the complaints about affordability come from people who are simply frustrated that they can’t live in the stylish neighborhood of their choice.

there is more




California losing lure over costly housing - -> http://www.scmp.com/property/hong-kong- ... ly-housing

Quote:
With its unique geographical advantages and natural conditions, California has been a popular investment and tourist destination.
However, its stubbornly high housing prices have deterred many people from moving into the state, and many are even considering moving out.

“We have been renting an apartment for over 10 years, and still cannot buy our own house as the rent increases every year,” resident Li Yunqi said. “The American dream is about a house and a green card. But here in California, it’s not easy to let your American dream come true. We have decided to move to Texas as there is a good job opportunity for me.”

A survey by the University of California Berkeley’s Institute of Governmental Studies showed 56 per cent of California’s population, including homeowners, were considering moving out of the state. In Los Angeles, 59 per cent were mulling a similar move.

there is more




Quote:

Classical scholar, Victor Davis Hanson, resides in Central California, educates at Stanford in Palo Alto, and addresses the political, economic, and cultural disparity between the liberal elites along the Pacific Coast and the rest of the state, 40 miles east of the coast. At the American Freedom Alliance's "California: From gold to dust" conference in L.A. 20 August '17.



Victor Davis idea is that most of the middle class that voted republican has moved over the years to other states and as a uni-party state with old out of touch rulers California no longer has much sway nationally except for fund raising activities. The laws made by the people on the coastal strip don't have a direct impact on them due to having higher average incomes, but it's hollowed out the middle class in the rest of the state who left leaving only a lower income economic class who are dependant on welfare - hence the two states of California.


Top
 Profile  
 
 Post subject: Re: USA: Housing affordability in California
PostPosted: Wed Jan 09, 2019 5:37 pm 
Offline
Real Estate Developer

Joined: Aug 19, 2011
Posts: 973
Housing Bubble Trouble in Silicon Valley & San Francisco
https://wolfstreet.com/2019/01/07/housing-bubble-trouble-silicon-valley-san-francisco/

Quote:
But this time it’s not a result of a tech bust. That hasn’t happened yet.

Housing inventory listed for sale in the two counties that make up Silicon Valley – San Mateo County and Santa Clara County – and in the county of San Francisco, surged by 113% in December compared to December last year, to 2,691 active listings, the most for any December since 2013


Top
 Profile  
 
 Post subject: Re: USA: Housing affordability in California
PostPosted: Wed Jan 09, 2019 9:59 pm 
Offline
Nationalised

Joined: Nov 6, 2006
Posts: 9012
Location: Hollywood
I would say infill somewhere like Los Angeles would be an utter disaster, it already has too many people. Whatever infrastructure issues they have now will be twice as hard to resolve with twice the density.


Top
 Profile  
 
 Post subject: Re: USA: Housing affordability in California
PostPosted: Thu Jan 10, 2019 12:17 pm 
Offline
Too Big to Fail

Joined: Feb 21, 2008
Posts: 4425
Blindjustice BATONEFFECT wrote:
I would say infill somewhere like Los Angeles would be an utter disaster, it already has too many people. Whatever infrastructure issues they have now will be twice as hard to resolve with twice the density.


Just LA county, not even the Metro or CMA, has a population density one tenth of SF. And SF county is about 1/2 low density housing / industrial. Even if you just upped the density of the urban cores in LA county to SF levels you could add many hundreds of K's of residential units with most of the county staying low density.

The problem is not space or lack of land. The state is mostly empty. And is bloody enormous. The problem is regulation and zoning. California had reasonable priced housing until the current zoning regulation system was introduced in the mid 60's to mid 70's. High priced housing California is a recent phenomenon. Since the late 1970's/ early 1980's. And one that is easily reversed. Repeal Prop 13 and and revoke all local anti growth ordinances and just watch the cost of housing return to historical norms.

The price dynamic in the Southlands is different but the talk among natives / old timers in SF is the current bubble has run its course, its currently like 2007, 2000, 1991, 1979, the previous bubbles maxes, and its downhill from here. Probably no serious downward movement until a proper dot com crash and / or a proper earthquake. A good sized earthquake would clear out the hipsters/ dot comers pretty quickly. And the GoogleBus people. For a start no power, no cell phones and no Peninsula freeways for weeks / months. That would clean out the excess dross from the City for a few years leaving rents / house prices more reasonable.

Till the next bubble.

Saying that, the rent of a house in a non hipster / dot comer part of SF has gone up on average of just over 4% p.a over the last 30 years. Apartments / flats in nicer areas a bit higher but not by much. Everyone doing the complaining about rents are recent blowins who wont be living in the City very long anyway who want rents to be as cheap as in whatever podunk city / suburb they grew up in. My answer is always the same, want cheap rents move back to where you came from. You can have pretty or you can have cheap. You cannot have both.

We are way overdue for a good sized earthquake. It will be the 30'th anniversary of Loma Prieta in October. And that was only a mid sized one. Not even a proper one. Its going to fun watching the hipsters / dot comers learn the hard way what is printed in the Disaster Guide in the front of the phone book. For the first 72 hours you are on your own. You should have a full 5 day / 7 day emergency prep kit and expect no help from outside...

Then they will very quickly discover they are on a vertical learning curve. With no cell phone. No internet. No electricity. And no Amazon Prime.


Top
 Profile  
 



Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 4 posts ] 

    Board index » Global Property Bubbles » International Property Bubbles

Who is online

Users browsing this forum: No registered users and 0 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Jump to:  

Follow, Retweet @dailypinster



Pyramid Built, Is Better Built! - Latest Property Discussions www.thepropertypin.com