Dr. Housing Bubble reports:
The airwaves are now once again blessed with the non-stop talk that accompanies a typical California housing fever. We are in the presence of a powerful headwind with low inventory and cheap money sloshing around the system. There was a story talking about the backlash being leveled on people renting out their Santa Monica homes via AirBnB. The story sounded like our typical Taco Tuesday baby boomer that hit the real estate lottery and is now cashing in on some nice rental cash flow. The issue? Other locals don’t enjoying paying for million dollar crap shacks and living as if they were next to a hotel. People want the Leave it to Beaver neighborhood with a Keeping up with the Kardashians price tag. As usual, people in California want it both ways. The story was interesting because it tried to paint the older person as cash strapped when in fact, they were sitting on an equity goldmine but alas, they would have to sell to unlock that equity. Instead, they would rather rent their Santa Monica pad, cash in some large rental checks, and use the proceeds to shop at Whole Foods and enjoy those delicious Taco Tuesdays. Welcome to the People’s Republic of Santa Monica.
Thanks rent-control! Thank you for the war on working people!