Housing Values May Drop Over 50% In Silicon Valley (Berkeley, Santa Clara: sales, renters)

[kinkytoes]

Can people build there? This part is supposed to be the "rural" cough cough part of CALI and a BIG SECRET!! You naughty man. But seriously somebody told me that developing raw land is supposedly more costly in CA.

To me the prices DID look do-able, although a tiny bit expensive. They are probably Way more do-able for rich people than me. Once the folk down in San Francisco and the like find out what to do, then those guys in Ukiah may be in big trouble.

[Perma Bear]

Originally Posted by kinkytoes

Can people build there? This part is supposed to be the "rural" cough cough part of CALI and a BIG SECRET!! You naughty man. But seriously somebody told me that developing raw land is supposedly more costly in CA.

To me the prices DID look do-able, although a tiny bit expensive. They are probably Way more do-able for rich people than me. Once the folk down in San Francisco and the like find out what to do, then those guys in Ukiah may be in big trouble.

Shhhh I said nothing. I don't want the hipster techies to find out.

[phantompilot]

I have to agree the bubble is being propped up in large part by excess profits derived from labor exploitation of the cannabalistic H1-B program - which slashes labor costs. When that ends, the bubble ends also.

[JohnSoCal]

Originally Posted by phantompilot

I have to agree the bubble is being propped up in large part by excess profits derived from labor exploitation of the cannabalistic H1-B program - which slashes labor costs. When that ends, the bubble ends also.

That is the most ridiculous comment I have ever seen.

[phantompilot]

Originally Posted by JohnSoCal

That is the most ridiculous comment I have ever seen.

Why's that? So there is no excess profit derived from the savings from several hundred thousand H1-B workers? According to you.

If you only saved 10K per worker, that's $1B savings per 100,000 H1-B's. And there are about a million H1-B workers in the country....I'd guess 300K or so are in CA.

So right there is a 3B/savings per year...that's if you only save 10K/worker. We know its often much much more than that.

[thetrb]

Originally Posted by phantompilot

Why's that? So there is no excess profit derived from the savings from several hundred thousand H1-B workers? According to you.

If you only saved 10K per worker, that's $1B savings per 100,000 H1-B's. And there are about a million H1-B workers in the country....I'd guess 300K or so are in CA.

So right there is a 3B/savings per year...that's if you only save 10K/worker. We know its often much much more than that.

There's a housing bubble because of lower pay for H1B jobs? How does that make any sense? According to that logic the H1B holders should not be able to afford expensive houses, so how do they contribute to a housing bubble?

[JohnSoCal]

Originally Posted by thetrb

There's a housing bubble because of lower pay for H1B jobs? How does that make any sense? According to that logic the H1B holders should not be able to afford expensive houses, so how do they contribute to a housing bubble?

Exactly!!!

[silverkris]

Originally Posted by thetrb

There's a housing bubble because of lower pay for H1B jobs? How does that make any sense? According to that logic the H1B holders should not be able to afford expensive houses, so how do they contribute to a housing bubble?

And why would an H1B visa holder buy a home at all before they can get permanent resident status?

[phantompilot]

Originally Posted by JohnSoCal

Exactly!!!

They don't buy them...they rent them. Often times packed in two to a room.

More people = more demand for housing. How is it you cannot seem to grasp a simple concept?

[phantompilot]

Originally Posted by silverkris

And why would an H1B visa holder buy a home at all before they can get permanent resident status?

It's like you think the demand for housing is based on who owns it. You're confused.