[ilyaeck]

Unless the rental market in SF bounces back soon, one would expect a sizable portion of landlords to opt for cashing out. Which, in theory, should increase the real estate supply and drive property prices down (AKA rents are a leading indicator of real estate prices). However, real estate seems to be unfazed by that prospect (still very much a bull market), as if it existed in a parallel universe. How to explain this paradox?

[username90]

They expect rents to bounce back up in a few months, it is a reasonable assumption. The main risk is if most big software companies in SF allow workers to go full remote, then property prices would fall like a rock. But as of now it looks like most companies will just allow partial work from home if any at all.