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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (62762)	4/25/2005 4:28:34 PM
From: Elroy Jetson	Respond to of 74559

Let's cut through your nonsense and get down to what matters - income density. You are convinced that land use regulations has created an explosion of prices in San Mateo County. Yet San Mateo County has identical land use regulations to many identical communities in the San Francisco Bay Area which have not experienced the same explosion in home prices. My Dad could easily clear up your confusion since he is a real estate developer in the San Francisco Bay Area. I'll answer for him. San Mateo County is the bedroom community for the Internet Boom. *Billions of dollars of money which was raised from international capital markets, and funneled through ownership and stock options in internet companies, was spent in part on San Mateo real estate.* • • • This is a dramatic increase in income density in San Mateo. While rents are high in San Mateo, rents provide a negative return on San Mateo real estate due to the price run-up. Yet the return is positive in other identical upper end San Francisco Bay Area communities like Orinda/Lafayette or Marin County. San Mateo County residents, flush with their internet riches, would prefer to over-pay for San Mateos real estate than live elsewhere. Your wacky analysis claims that the inadequate rent levels in San Mateo, relative to the very high real estate prices, indicate that homes should be torn down and replaced with apartment buildings and condos. To anyone who understands economics, your viewpoint is bizarre. The very sort of fantasy based beliefs which have so impaired New Zealand's economy. .