Silicon Valley's housing crisis, in one sentence

Re:Silicon Valley's housing crisis, in one sentence by rconti on Tuesday June 07, 2016 @06:47PM (#11858623)

I bought in the last couple of years while things have been increasing. You're right, I'd rather not be underwater, but I can stomach it or I wouldn't have bought.

But you're making a huge logical jump to say that building housing could magically slaughter my house value and that I'd be underwater because of it.

I'm worried about being underwater because of a recession or cyclical trends or tech jobs wholesale abandoning the area, or any number of things.

The LAST thing I worry about is housing being built so fast that it'll tank the value of my house. It simply won't. If there's enough continued demand for housing, by all means, build, build, build. It means neighborhoods will get more vibrant. I see no scenario where building will tank my house value (short of building and THEN a recession).

I don't think people worry about growth hurting their home value. I agree with others here that they worry about the impact on what THEY value in their neighborhood, but most people aren't looking to sell their primary residence so a temporary slowdown in the growth rate of the equity is simply not on their radar as an important matter.

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Re:Silicon Valley's housing crisis, in one sentence by shostack on Tuesday June 07, 2016 @09:04PM (#11859296)

Mind if I ask if this is your "forever home" or close to it? I'll bet there's a hefty divide in whether or not people are worried about it going underwater based on their outlook for how long they intend to live there.

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