San Francisco- Gentrification Gone Wild!

San Francisco's real estate market reaches ominous milestone for home-buyers as median house price crosses $1million average for the first time
By David Mccormack and Associated Press Reporter

"San Francisco’s out of control housing market passed an ominous new milestone last month when the median selling price for houses and condominiums hit seven figures for the first time... The technology's industry's rapid growth coupled with 49-square-mile San Francisco's constrained supply of housing is a big part of the story behind the city's ascension to a rarified real estate bracket."

My Comments About The Article AboveEverybody wants their city to thrive, however when it goes over the top it can be a bad thing. Especially for long time residents. Home values have increased several times their value of what they were a few years ago. That's a bad thing for someone not wanting to sell or move. These are now seeing their appraisals soaring along with property taxes that accompany them.

It was pointed out in the article many of the older homes aren't looking any better then they did before. That's of little wonder considering buyers most likely have emptied their wallets just to purchase the house. They along with the longtime homeowners who face ever increasing taxes on them.

I question why people who already have a job relocate in an area like this in the first place. What's the point if someone lands a job that pays five times more if it costs five times more to live there? So too I wonder how many stop and think how much more they'll have to shell out in higher income taxes. Some workers outside of S.F. might as well stay where they are when wages versus costs (not to mention moving costs) ends up being less then what they already have.

Then there's this thing I call a game of musical chairs. What happens when the music stops? Tech companies can pack up and leave just as easily as they came. When tech company office space can be had for dimes on the dollar somewhere else they aren't going to stick around forever.

Still some might consider the move because they somehow believe they will be living with a better class of people. Here's a flash, money doesn't buy class. Some of these same people may find they traded away living amongst low income assholes for more affluent ones.

I'm not against a city or people improving their incomes and lives. However history shows us there were thriving towns thousands once moved with their families to pan for gold. When they got there, so too they found prices were through the roof. The gold ran out. Now those towns look worse then Motown after the automotive industry left for greener pastures.

Timing is everything. You got to know when to get in and when to get out. Not everyone is going to end up a winner. One should consider their fate if they should happen to be there when the music stops. It's important to understand these kind of things never last.