You underestimate the dynamic and self-correcting nature of our market system, and also ignore some beneficial effects of such an event.
First, SDSU students are not stupid–they will go to other neighborhoods, etc., saddling the new foreign owners with huge vacancies. Second, those new areas receiving the influx of students, will boost their prices, spurring the building of more rentals, subdividing houses, etc. In addition, the happy sellers of all the SDSU-near housing and apts must have been paid a pretty penny to sell out–they will now spend, save, and invest, leading to more beneficial effects.
I think it was at the height of the Japanese boom in the 1980s when all the US-bashers thought we would be overwhelmed by the Japanese buyers (before their 2 decades of stagnation), that Japanese investors bought the famous Pebble Beach, for about $1 billion I believe. They way overpaid for it, and sold for a lot less years later. Vancouver may some day experience the same.
We need to keep our country open for business, preserve property rights and the rule of law, and welcome foreign investors while we hope they keep on welcoming us.
