Comment by bretpiatt | Hacker News Reader

Top New Best Ask Show Jobs

Comment by bretpiatt | Hacker News Reader

Parent Full thread

Using data from here: https://www.bayareamarketreports.com/trend/bay-area-market-s...

It looks like ~3% of the housing units in the greater Bay Area sell on an annual basis so if the top 3% of income earners can afford today's prices the liquidity cliff can hide.

That's actually a really good way to look at it. If turnover is really small, you only need a very small number of wealthy buyers to keep driving the price higher. Everyone else kind of doesn't matter.

Using the rule of 72, every home turns over every 24 years.

The top 3% aren't buying homes every year.

Reply on news.ycombinator.com