[rspeer]

If the problem is that overseas investors are buying the houses, sure, that's a problem that decreases the amount of living space. But how would restrictive zoning fix that problem?

And I still don't think the flipping is relevant in the long run. It's pent-up demand sorting itself out. They can't keep flipping forever.

[TulliusCicero]

> But how would restrictive zoning fix that problem?

Not only does restrictive zoning not fix the problem, it only makes it worse. Part of why you have investors buying properties in places like SF is that housing is such a hot commodity due to the restricted supply. If it was easy to make lots more apartments and condos there, it would be less attractive as an investment, which would mean less speculation.

[sandworm101]

It's not so much the level of zoning, but its recent liberalization. Properties that are not living up to their zoning potential (ie you are now allowed to build something much bigger) are being pulled off the market for redevelopment. Then the new units are so geared towards ownership and investment, many being pre-sold individually, that they never return to the rental pool.

A more restrictive approach could discourage such redevelopment and sequestration, keeping rental units as rental units.