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Old 10-16-2016, 10:51 PM
 
4,310 posts, read 2,446,977 times
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Quote:
Originally Posted by High Altitude View Post
Income isn't the only thing that sustains housing, but wealth. Lots of people bring equity/cash with them and are able to buy and pay for homes that their income alone can't afford.
Less than 5% of the US population has 1 million dollars and that is total net worth. Not all of them want to live in the Bay Area.
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Old 10-16-2016, 11:10 PM
 
2,621 posts, read 2,023,746 times
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Quote:
Originally Posted by Perma Bear View Post
Less than 5% of the US population has 1 million dollars and that is total net worth. Not all of them want to live in the Bay Area.
Obviously there are enough people with money still buying, prices still up etc....

About 1/3 of sales in all cash, split about 50/50 between foreign buyers and Americans with money, mostly older people.

Lots of people living in SF bought low and have held for a long time, so those people most likely don't have the income to afford the area in today's prices, yet they still live there. There are plenty of people like that all over the world in expensive cities who sell, take their wealth and go elsewhere etc..

As long as the jobs and the money keeps coming in, prices will still be supported.

Population grows continually, number of rich people grows even when the percent of population that are rich stays the same while supply in the area can't keep up etc...... so that helps to keep prices up.

It is what it is.

I find it ironic when people can't believe that some cities around the world are just going to be this expensive. People who have the means have to live somewhere and they all want to live in a handful of places so that will drive the prices up, especially when we can't add much supply.
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Old 10-16-2016, 11:32 PM
 
4,310 posts, read 2,446,977 times
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Quote:
Originally Posted by High Altitude View Post
Obviously there are enough people with money still buying, prices still up etc....

About 1/3 of sales in all cash, split about 50/50 between foreign buyers and Americans with money, mostly older people.

Lots of people living in SF bought low and have held for a long time, so those people most likely don't have the income to afford the area in today's prices, yet they still live there. There are plenty of people like that all over the world in expensive cities who sell, take their wealth and go elsewhere etc..

As long as the jobs and the money keeps coming in, prices will still be supported.

Population grows continually, number of rich people grows even when the percent of population that are rich stays the same while supply in the area can't keep up etc...... so that helps to keep prices up.

It is what it is.

I find it ironic when people can't believe that some cities around the world are just going to be this expensive. People who have the means have to live somewhere and they all want to live in a handful of places so that will drive the prices up, especially when we can't add much supply.
In the 50s places like this cost maybe 25% more than say suburban midwestern cities vs 500%+ now. The economy has heavily distorted since then.
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Old 10-16-2016, 11:53 PM
 
2,621 posts, read 2,023,746 times
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Quote:
Originally Posted by Perma Bear View Post
In the 50s places like this cost maybe 25% more than say suburban midwestern cities vs 500%+ now. The economy has heavily distorted since then.
SF really isn't that expensive compared to other top tier locations like Paris or Hong Kong.

It wouldn't surprise me at all if SF got even more expensive (a lot more even).

In some places they say the billionaires are forcing out the millionaires.
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Old 10-17-2016, 08:26 AM
 
9,080 posts, read 3,697,658 times
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Quote:
Originally Posted by Perma Bear View Post
In the 50s places like this cost maybe 25% more than say suburban midwestern cities vs 500%+ now. The economy has heavily distorted since then.
in the 50s, you weren't born either, times change...
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Old 10-17-2016, 08:58 AM
 
4,310 posts, read 2,446,977 times
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Quote:
Originally Posted by MLSFan View Post
in the 50s, you weren't born either, times change...
The earlier you were born the more opportunity you had
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Old 10-17-2016, 09:10 AM
 
9,271 posts, read 4,734,254 times
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It is a bubble but you can't fight the FED.
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Old 10-17-2016, 10:34 AM
 
1,064 posts, read 705,752 times
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Quote:
Originally Posted by aridon View Post
Stocks are overvalued and due for a correction. Maybe a little more. Real estate is overvalued in some areas. Otherwise we are in a low growth atmosphere with low inflation.

Here in NJ housing hasn't even kept up with inflation since at least 2003.
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Old 10-17-2016, 06:25 PM
 
4,229 posts, read 1,904,197 times
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Quote:
Originally Posted by High Altitude View Post
SF really isn't that expensive compared to other top tier locations like Paris or Hong Kong.
According to Business Insider, SF is only the third most expensive US city for a family of four to live in. Behind New York and Washington DC.

Cost of living for families in big US cities - Business Insider
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Old 10-17-2016, 08:32 PM
 
Location: Oregon, formerly Texas
5,242 posts, read 3,393,710 times
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Quote:
Originally Posted by Pub-911 View Post
According to Business Insider, SF is only the third most expensive US city for a family of four to live in. Behind New York and Washington DC.

Cost of living for families in big US cities - Business Insider
The difference would be more rapid distance decay in both the DC and NYC areas.
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