[quote=joec]
One thing that I think people need to also accept in general is that to live in CA and if you think of a “coastal” place, those places and most places in metro CA (SF, SV, LA, SD) will never be affordable for “middle” income people.
Middle income americans weren’t meant to buy homes here at the 700-1mil min to play price when you can go to Vegas or Texas and buy a nice decent place for 200k.
I actually think we will be more like Europe and most people will just end up renting moving forward in a lot of areas in CA.
With a global economy and wealth all over the world, people who have the wealth (stocks/houses) aren’t in any rush to sell and supply is still pretty limited overall here.[/quote]
Affordability matters at some point. Maybe we end up being a renters society but even then local incomes will control how high rent can go. There’s always going to be pressure on housing prices from the interest rates and the buy or rent calculation. It’s never going to get too extreme one way or the other because it will get arbitraged eventually.
There’s 10’s of thousands of people in San Diego that live in a house they couldn’t afford to buy at today’s prices. When they die those homes will rent or be purchased by something affordable for the middle income of that area. The house in Mira Mesa that is occupied by an aging boomer who bought it 30 to 40 years ago on a military salary will eventually be occupied by somebody else.
