The lack of decline in SF housing prices is deceiving. Landlords won't reduce the base rent because of rent control. Instead they'll leave units vacant or offer a few free months or $0 deposits.
So the stats might show a flatness in rental rates, but in reality there was a drop. And then as soon as the crisis is over, people want to move back and the rents start going up from that flat base rate after the incentives stop.
Well to be fair the interest rates were halved during the post 9/11 / dot.com bust. Which to many, is the reason the prices didnt fall as buying power increased.
Re:Markets, Rent and WFH
by dragonwriter on Friday July 03, 2020 @08:03AM
(#23723245)
> Well to be fair the interest rates were halved during the post 9/11 / dot.com bust.
There was no “post-9/11 bust”. 9/11 happened toward the end of the 2001 recession (March-November 2001)
The post-9/11 expansion had particularly poor distributional characteristics, with, IIRC, the bottom 3 quintiles losing ground, the fourth quintile flat, and virtually all the gains in a narrow slice at the top (not just the top quintile, but the top 5% or so.)
I was, and I remember it being specifically noted in local media shortly afterwars that while the same was not true of some parts of the Bay Area, SF did not see a decline in housing prices as a result of the bust, though it did see a temporary decline in the rate of increase.