The Housing Market With Nowhere to Go but Up

Re:The Housing Market With Nowhere to Go but Up by _greim_ on Sunday March 02, 2014 @02:35PM (#7330402)

Yes but hysteresis effects likely come into play where actual price points can't keep up with ideal market price points when the ideals change quickly. E.g., residents would balk at a $30 Chipotle burrito (I'm guessing here) even if that's the price it would need to be for a Chipotle owner to break even. By the time residents update to the "new normal", the damage is already done.

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Re:The Housing Market With Nowhere to Go but Up by bilbo0s on Sunday March 02, 2014 @04:11PM (#7330784)

I think you may be missing the point...

there would be no Chipotle if the housing prices kept going up.

Or if there was, it would be a tourist stop and would certainly make its money on volume. Basically, it would be like that god awful McDonald's on the Champs Elysee.

In any case, the price for it's burritos would, in all likelihood, not rise to an unaffordable number. At the same time, local residents would not make up the bulk of its customers.

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Re:The Housing Market With Nowhere to Go but Up by _greim_ on Sunday March 02, 2014 @04:41PM (#7330893)

> there would be no Chipotle if the housing prices kept going up.

I don't follow this at all. Are you suggesting that restaurants would simply disappear from SF entirely? Or that locals would never go to restaurants? It seems much more likely that restaurants would just get more expensive during which time there would be some churn and turnover in the market.

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Re:The Housing Market With Nowhere to Go but Up by mindslight on Sunday March 02, 2014 @04:45PM (#7330903)

Don't worry, Chipotle will weather the storm just fine. However, the good burrito places will have a very hard time.

It makes me cringe that one would even think of Chipotle as an acceptable place to eat in fucking San Francisco.

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