Silly valley will always have cycles of boom and bust….Unless something drastically changes such that silly valley is no longer the center of high tech, I don’t think this cycle will really change. It will fall, and it will come back….
Check this out.
And the reason is probably because in every tech bust-boom-bust cycle, Silly Valley is the first to go through it. A lot of money flows throw the Valley. Not everyone is able to make it up there (most aren’t). And the ones that usually stay are the ones that have made it (in some shape or form). So it’s a like a gold rush. The majority of the people go their hoping to strike gold, some do, most won’t. But as long as you have that gold rush continuing, you’ll have these cycles.
And unlike other areas, they really are running out of places to build homes in silicon valley. A lot of the old cherry farms and other agricultural places have gradually been replaced by high density housing. So if anything, the land of your house is sitting on is way more valuable than the building itself.
Recently on craiglist, I got someone who asked “I’m interested in renting your place if there’s an option to buy… I said, no I never plan on selling”….
