a. That particular area happens to have had a history of earth quakes.
b. People who already have homes, think they own the view. Also known as NIMBY.
c. Building new homes(like big apartment complexes with mass housing), would crash the market. Because many people have put in $1 million+ to buy a home. Imagine what happens when homes are suddenly available for $300K a piece. Those people will go bankrupt instantly.
The market won't crash. You can't physically build fast enough to do it even if all the zoning was fixed. If anything you'll temper prices or lower slightly but even if they fell a bit maybe CA'd get needed tax changes finally.
Yes, something like this will happen in and close to SF, like till Palo Alto may be. But if you allow building high rise apartments, places far enough from SF will see a good fall in prices. Then you can build fast enough in those places given the demand for homes at those prices.
Beyond all this once its clear that you can get decent accommodation for $300K, spending $1.5 million for the same becomes stupid.
Sure people will buy McMansions and homes in cul-de-sac as a badge of prestige. But anybody with a brain, and knows that money is better spent on saving up for retirement will look the other way go stay in the $300K flat. You would stay in the same if you rented, anyway.
> That particular area happens to have had a history of earth quakes.
This is not an excuse. High rises that are well designed are perfectly safe in earthquakes (safer than single family homes often times). Other major cities in earthquake areas (like Tokyo) do not have this problem.
a. That particular area happens to have had a history of earth quakes.
b. People who already have homes, think they own the view. Also known as NIMBY.
c. Building new homes(like big apartment complexes with mass housing), would crash the market. Because many people have put in $1 million+ to buy a home. Imagine what happens when homes are suddenly available for $300K a piece. Those people will go bankrupt instantly.
d. Rent control.