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That is the fear, yes, but housing prices do not jump so quickly. They really are not likely to drop, as, perhaps, climb much more slowly. It seems we have achieved a self-reinforcing civic virtue "anti-pattern", where middle class anxiety about high housing prices ends up squeezing the future housing supply. In other words, the negative feedback via anxiety caused by high demand may be greater than the usual positive correcting effect we expect from the "invisible hand", to add supply in the face of high demand. IMHO it is a matter of homeowners acting on incomplete information. Sure, your house price going up seems nice, but it is only a significant benefit if you sell and move elsewhere for your retirement days. Those who actually like where they live and want to set roots have the practical problem of how affordable the place they live is now and when they retire. That is a death by a thousand cuts. Regarding the future, I do hope to make the world a better place through my job. But in the practical world of the now, we need mechanics, teachers, grocers, plumbers, nurses, handymen, construction workers/contractors, waiters, etc. etc. or the SF Bay becomes an expensive hellhole. Having enough people around who keep the community livable requires more affordable housing. |