looking at the interactive graph seems Los Angeles is worst off than San Diego (for real estate affordability),… BUT one item not taken into account in the zillow study and other real estate centric studies is the systemic problem of public pensions
have not looked into detail(s) how the LA public pension portfolio is structured, but here in SD the big problem seems to be the three decades plus standard operation procedure of a 13th check which looking at the black box, is exponentially producing debt obligation (which the front page news article in the UT should have reported on)
people should seriously ponder “what if” nothing is done to directly address issues like the “California rule” which implies taxpayers are the financial backstop for shortfalls of public pension portfolios because the “California rule” like credit default swaps from too big to fail banks, have taxpayers as the implied financial backstop
bottom line,… even before the eventual storm hits, the system is set up w/ two massive systemic head winds which are setup to hit households w/ debt obligations that are going to be difficult/impossible to deal w/ so as a result I’d say real estate is going to take an eventual hit (so better have a hedge strategy in place to beat the sheeple and the system)
