

The real reason only rich people can afford to live in Silicon Valley - edward
http://www.vox.com/2014/7/13/5895181/the-real-reason-only-rich-people-can-afford-to-live-in-silicon-valley

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vorg
> The Bay Area has plenty of room for more housing. [...] If housing
> regulations were relaxed, developers would make room for millions of new
> residents, creating thousands of construction jobs in the process. That
> would alleviate the severe housing shortage currently plaguing the city.

Most people who bought houses in these cities while working wanted to sell up
for as high a price as possible to retire in some cheap housing somewhere
where they don't need to be close to a job. So they vote for city and county
governments that restrict new housing permits. Reduce the supply of product to
make the prices go up.

Those buying houses in smaller countries like Australia and New Zealand have
had the complementary process available to them: boost the demand. They voted
for the national governments that let in the most immigrants. That's why the
housing industry didn't collapse in Australia/NZ around 2008 like it did in
many US cities. They vote for the city governments that restrict new housing,
and for the national governments that let in the most immigrants.

Reduce the supply and boost the demand to make the sale price on workers main
asset go up quickly. They sell up, pay back the bank, and retire to some beach
in rural Queensland.

