San Francisco rents plunged by stunning 27% in 18 months. But in 5 big cities, rents jumped by 20%+. But in some of the cheapest cities, rents dropped.
Then there’s the “single-asset” commercial mortgage-backed security (CMBS) backed only by the mortgage of this tower.
A pandemic of house price inflation.
Californians applying to lease single-family houses in Arizona, Nevada & Texas doubled from year ago; migration from New York & New Jersey to Florida similar: American Homes 4 Rent.
The glut is in neighborhoods with condo towers, particularly where the construction boom has been. Neighborhoods with low-rise buildings are less impacted.
Unemployment and work-from-home or work-from-anywhere are massively shifting where people want to live.
Work-from-anywhere, unemployment crisis, oil bust, people chasing a cheaper less crowded place to live, the land rush to buy homes.
There’s a housing shortage until there’s suddenly a housing glut: see San Francisco et al.
As after the last crisis, fueled by ultra-cheap money, they’re taking financialization of the housing market to the next level (transcript of my podcast).
There is a “housing shortage” and an “inventory shortage” until there suddenly isn’t.