We tend to project too much of our own needs onto others. Many of the people checking real estate sites are dying to buy. But not the Average Joe. Remember Average Joe consumer is who makes the market.
No, I don’t think that there is pent-up demand for housing. The demand was there when there was appreciation (that’s what people where demanding).
We’ll see plenty of young people move back to the Midwest.
As far as Biotech and Tech is concerned, there will be major layoffs also because those companies don’t generate revenues to be self-sustaining. They depend on venture capital money and those investors were flippers for the appreciation just as much as house buyers. If the prospects of buyouts disappear, the venture funds will say bye bye also.
Looks at the Biotech closings in SD (Elan, Pfizer and more to come). Biotech is a bubble that will last about two decades. Consumers will stop popping all the magic new pills they’ve been taking because those pills generally don’t work better than the generics.
My prediction is that we’ll have outmigration from San Diego to rival the bad old days of the 1990s.
