As I’ve grown fond of pointing out, the current situation in San Diego bears little resemblance to 2006:
However, I don’t know that the same can be said for Silicon Valley and its environs. A lot of the stuff going on up there seems blatantly unsustainable, and not just the housing market.
It seems to me that an awful lot of what’s going on in SV resembles a bubble, or at least (if a less controversial term is desired), is economically unsustainable. What’s going on in the venture capital space seems particularly wacky. Hell, there are not one, but TWO tv comedies about trying to get venture funding in/near SV! (Silicon Valley, which btw is comic genius, and Betas).
Of course that’s just anecdotal, but there is an awful lot of bubble-like behavior taking place as far as I can tell. I read an article recently about some startup shooting money onto the street at some conference. The shockingly high price of housing in the area also fits into the bubble narrative quite well.
I wouldn’t be surprised to see a serious retrenchment in many aspects of the SV economy in the years ahead.
