Looks like San Francisco is becoming the next Detroit
(twitter.com)
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SF is a darling of the establishment. The real value of the property in San Francisco has been cratered ever since the COVID hysteria. but the investors in San Francisco property will never let it drop, because the perceived value is greater than any profit they would actually make from having tenants living under them.
It might eventually drop after the dust is settled, maybe a decade from now. but I don't see it dropping anytime soon because it would be an admission that the establishment and their policies turn their darling City into a worthless concrete jungle, which would be a blow to their egos and their savings.
You think they're exempt if the housing market goes down? I don't know that market.
I'm saying they won't allow it to go down. They have enough influence to fix the markets in the major cities, it's why they can demand over 2k/month for a studio apartment with no view, even though half the building is empty.
I qualify the business cycle as in the middle of a meltdown. People who actually need housing, who ultimately provide the base for the market even if there are empty units for investment, almost all borrow. They don't end those borrowing parties arbitrarily -- there are still consoomer to fleece. Though I think the timing can be manipulated. They end the cheap money party because something else is about to give. In this case, I suppose the rate of inflation threatens to head into disaster territory.