San Francisco: Disneyland for Yuppies? via The Real Estate Bloggers – “San Francisco is forcing out the middle class from the city. The city has bifurcated. To live there you either have to be very well off or qualify for subsidies. The large middle class has been pushed out to the suburbs…..Of course, when you have a government that puts excessive regulation on the construction of new housing, how can you have anything different. Not letting the marketplace work and new housing be constructed creates a shortage and thus huge appreciations.”
Or perhaps the government regulations contribute to the quality of life that attracts wealthy residents who then bid up the price of buying in?
And of course (he says sarcastically) there is no impact from sellers who up their selling price to whatever the market will bear or land owners willing to take a higher price which has to be passed on to the unit buyers. And of course in the absence of government regulation, developers will eagerly jump on the opportunity to build affordable housing and make less profits.
Or perhaps the issue is a little more complex.
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