I think that the small shops in North Park, Hillcrest, Downtown, etc. will close during the recession. Many of those small business opened thanks to home equity extraction.
Who would pay $10 for a candle or such useless junk? Who would pay $5.00 for a quart of milk when you can get 2 gallons for $5.00 at Costco.
If we want a more densely populated areas, we need mass transit linking apartment dwellers to multi-story shopping centers like they do in other countries. Small affordable luxury, street level, stores won’t last when the home equity ATM dries up. Those type stores are fine in some high end neighborhoods or tourist areas, but they don’t make economic sense is most areas.
I know of two people who took home loans to start businesses. They aren’t making enough to pay themselves, the rent, and service the loans. They will eventually have to give up.
