I am not sure I see it either. One of the problems is the misconceptions of what sort of properties are held by industrial players. If you think that some entity holds 2000 sfr homes in San Diego county and they are generating income through property rentals you are about as wrong as can be. I do know that there are plenty of investment groups that purchase properties for flips but that is immune to long term interest rate issues. Now if you are talking larger commercial holdings that have 100’s or 1000s of doors per project then you are getting to be more accurate.

Steering the conversation back to what is most important for the generic engineer looking for a home on the I15 corridor, or Carlsbad, or Carmel Valley or Encinitas… very tough times and these homes will not be affected at all by any perceived commercial activity. The demand for these homes will be set strictly by the affordability for that same engineer and that is strictly determined by interest rates as well as the overall supply/demand curve.