Sunday, September 13, 2015

San Francisco Rent: $1,800 Per Month for a Bunk Bed in a House with 30 Other People

What happens to a rental market when regulations desuigned to harass landlords, rent controls and a Janet Yellen money spigot  are all combined.



  1. You are suggesting that there would be more real estate development with higher interest rates? LOL, the knee jerk "blame Yellen" nonsense makes you look like an idiot. THINK

    1. Wow. So much stupid in so few words. Have you ever read this site before?

    2. Yes, there could be more real estate development with higher interest rates. THINK.

      In a higher interest rate environment, say 20%, the financial landscape would look a lot different, and the market will adjust to other sources of capital in order to finance RE development. RE development doesn't depend on low interest rates!

    3. I have never seen so many logical fallacies exhibited in such a concise way. Well done, Anon. @ 6:06!

    4. I know it seems pointless to waste the time explaining things to commenters like Anon at 606, but it needs to be done.

      When a Central Bank inflates the currency, its effects aren't felt evenly across the economy. The new money has an entry point. In the U.S., that entry point is with major banks like Goldman Sachs. The Fed purchases treasuries from them with the new money it creates. The new money is spent on something, then something else and on and on. The items first purchased with the new money have their pricing distorted first.

      To overly simply things, the new money is going to hot tech companies. Hot tech companies are based in Silicon Valley. More people move there for the new high paying tech jobs. Therefore, the rental prices in SFO get bid up. In addition, SFO's commie government severely limits new housing constructions, so it takes much more time for supply to catch up with the demand.

      So, Anon at 606, you can now see why Yellen is being blamed, and why you shouldn't leap to calling someone an idiot simply for knowing more about the economy than you.