Re:San Francisco braces for commercial real estate crash
by JumpCrisscross on Tuesday September 06, 2022 @02:38PM
(#32741265)
> For how long?
Infinitely. Wages go up in nominal terms, too. What matters is the real housing price hovering around zero. (Slightly above, localized, is also fine if balanced by migration.)
Re:San Francisco braces for commercial real estate crash
by bombcar on Tuesday September 06, 2022 @03:02PM
(#32741669)
Real "house price" for a given house should actually go down over time, because it gets older and worn down and just not quite as good as the new hotness.
Re:San Francisco braces for commercial real estate crash
by JumpCrisscross on Tuesday September 06, 2022 @03:15PM
(#32741868)
> Real "house price" for a given house should actually go down over time, because it gets older
House, as in structure, yes. Home, as in structure + land, probably not. Real wages are higher today than they were in the 80s [1]. One would expect some of that to filter into land value.
Re:San Francisco braces for commercial real estate crash
by mechanical_bear on Tuesday September 06, 2022 @03:16PM
(#32741884)
Most people are constantly doing upgrades to their homes, as well as maintenance.
Re:San Francisco braces for commercial real estate crash
by JamesBarney on Tuesday September 06, 2022 @02:42PM
(#32741336)
Inflation and real wage growth.
For how long? If housing is a good investment, eventually the cost of housing will outpace the ability of new entrants to the market to afford it. If you're already "in the market", you might be OK. But if you're not, even the down payment may be completely out of reach.