Thread by @Trinhnomics

"Buy land, they are not making it anymore."

Mark Twain

May I add buy prime land like coastal California. You can always count on the politicians + residents to be voting for more regulations to limit supply. How do I know? I'm from California & invest their. A good call so far.

https://twitter.com/sfchronicle/status/1318387574214459393

With the government inept, local & national, & with lock-downs introduced as gov couldn't prevent a pandemic & shuts down local economic activities, people INVEST more in real estate as it's the only place they can control.

But if you think humans are rational, u're wrong.

While the land & property owners are rational & lobby properly & the politicians act accordingly with adding more regulations to limit access to lower supply & raise prices, the people NOT owning property CONSISTENTLY ACT AGAINST THEIR OWN INTERESTS.

Watch how millennials vote.

Do you think they will vote to be AGAINST regulations such as zoning, random environmental laws like mandatory solar, etc TO HELP W/ ACCESS & LOWER COSTS OF PRODUCTION OF HOUSING?

No. They focus on abstract issues & tinker at the margin like rent control while prices rise.

Only 1/3 of Californians can afford the median house price. The poverty rate is the highest in the country. Yet, Californians are proud thinking they are the beacon of society in the US & the moral anchor as they are pro whatever trendy things to value signal w/ rampant poverty.

Focus on local policy, esp state. Forget the presidential election unless u live in swing states. The 2016 election was decided by about 75k votes in swing states. As a Californian, look at the propositions. Vote down all regulations on housing. I voted No for most of the props.

Here is how I voted. X = No.

Should vote however u want (not good or bad) but I'm usually pro less gov intervention & pro human rights, as in I think convicted criminals, if crime not severe, should have the right to vote. Not feeling that strongly about cash bail but voted Yes

Look at the median income in California & the median house price in the Bay Area esp Santa Clara. Yikes or yippieee depending on who you are.

Btw, property tax is 1-2% per year of purchase price so very high taxes + insurance per year even if u own 100% of the property.

Why demand so high? Home ownership 54.8% (33.7 for millennials) & renters realized that they should buy as Covid-19 made them stay at home.

Demand for a house or better quality house rises but SUPPLY LOW = higher prices.
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Americans didn't go abroad so they INVEST more at home.

So as millennials graduate from their "experience" lifestyle to "ownership" one, then DEMAND FOR HOUSING can only rise as existing ownership ratio is too low.

SUPPLY? Well, from the look of it, it remains LOW relative to DEMAND into the future.

Good for existing owners.🥳💃🏻💪🏻