@danmur2797

7 months ago

One mistake often assumed and mentioned in the video, is that Silicon Valley/San Francisco is the center of California's economy with $725 billion in GDP. It's pretty important, but its largely played a secondary role in the state. The Los Angeles metro has been more important with a $1.3 TRILLION GDP. That's put it behind Tokyo and NYC for the 3rd largest global metro GDP (that's one third of the entire state's GDP). It has had the largest manufacturing base in the country and the busiest ports, along with Hollywood and numerous other industries. Even if you counted household millionaires on paper across the conurbations, LA would top San Francisco/Silicon Valley because it's population has been 3 times as big as SF/SJC, and the median home price in both regions is about $1 million. Regards construction--many journalists have a very singular focus thinking it's only about lack of construction. It's not. There's actually been A LOT of construction. There's entire cities and exurbs that didn't exist 23 years ago. In urban areas every single empty lot is bought up and brand new condos and apartments built on it. The actual problem NOT TALKED ABOUT BY THE MEDIA, is that we allow equity and cash rich investors of all types from mom and pop to institutional investors and Black Rock, and flippers, buy up single family homes. That takes out housing stock from the market diminishing supply. Would be first time homebuyers are priced out and keep renting. Until that is addressed housing will continue to be expensive. It's almost like they know, but ignore the issue and instead focus on the supposed regulations and construction (which has not been lacking). 5 years ago for instance Los Angeles was among the top 5 cities with construction starts in the U.S. By mentioning construction and regulations it shows they either don't understand the reality or keep repeating the straw man argument with no concrete evidence. Its not, I repeat not been a lack of construction. It's been a lack of real estate investment regulation. That would go a lot farther because all that cash being poured into real estate, particularly buying up existing homes, would drop. And first time buyers would not face bidding wars with cash flush investors.

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