Approaching Peak Housing Dysfunction in California

Re:Approaching Peak Housing Dysfunction in California by maxsilver on Thursday July 25, 2019 @09:57PM (#20531705)

> If zoning restrictions are relaxed and developer turns an acre into a 50 unit condo complex, that developer reaps a huge windfall. But everyone else who owns an Eichler on a 1/4 acre has fewer buyers competing for their property.

That's not completely accurate. Yes, demand might fall, but even so price and value will still rise regardless.

If you build a 50 unit complex next door, as long as some of those 50 units sell, then everyone elses 1/4th acre will become more valuable, even if no one ever actually buys them, because land value in the US has very little to do with buyers or demand, and is exclusively valued by whatever property transactions happen to occur nearby it.

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Re:Approaching Peak Housing Dysfunction in California by DrScump on Friday July 26, 2019 @03:08AM (#20532934)

  land value in the US has very little to do with buyers or demand, and is exclusively valued by whatever property transactions happen to occur nearby it

I don't understand the distinction you seek to make here. Those transaction values are specifically the result of buyers and demand.

Most residential properties here could have been snapped up in 2009 for about 60% of current costs... because demand was lower. (Probably several hundred percent in areas like Mission Bay.)

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Re:Approaching Peak Housing Dysfunction in California by jonny_eh on Thursday July 25, 2019 @11:55PM (#20532234)

Plus the single family home will be just as desirable. New condos are still less desirable in comparison.

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Re:Approaching Peak Housing Dysfunction in California by pcwalton on Friday July 26, 2019 @11:56AM (#20535727)

Thought experiment: If 500,000 new homes were suddenly available in San Francisco tomorrow, would prices decrease?

Land value in the US obviously has to do with buyers and demand.

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