[adventured]

It won't be a good hedge. You'll take a bath on that real estate if the venture capital market seizes up (eg with higher interest rates and were a bubble to pop). Rents will fall, vacancies will soar, and a lot of construction will halt.

I can't see what the parent meant, such that it makes sense as a hedge. The hedge (if one were really worried about a bubble popping) on SF real estate would be to sell right now - if you can get a high price - and rent.

[JimboOmega]

I'd never enter the SF renter market as a landlord, given that it can basically only go down.

I meant to suggest it as something you could short - it's an asset class that is tied to the health of the sector. Since it's hard to short the companies in the sector, you could short the RE as a proxy.