Tags: san francisco | housing regulation | government | real estate

A Fire Sale and San Francisco's Crushing Housing Regulations

A Fire Sale and San Francisco's Crushing Housing Regulations
(Justin Sullivan/Getty Images)

By with Michael R. Shannon
Saturday, 28 October 2017 12:21 PM Current | Bio | Archive

Furniture stores, mattress discounters and big screen TV purveyors are constantly claiming to be throwing “fire sales” with prices too good to pass up. In Oklahoma City a furniture store even incorporated “we got them fire-blazing prices” into the store’s commercial jingle.

Yet somehow the thought of buying something that smells of smoke and is possibly slightly charred never really appealed to me, in spite of the “low, low prices.”

Now Business Insider has found a homeowner who’s having a genuine fire sale because his house is burned up. In 2016 a fire completely gutted a home in San Francisco’s “tony Bernal Heights neighborhood.” Now the homeowner has put the burnt-out shell on the market for $800,000.00, which the real estate agent claims is listed “below market value to incite interest in the first few weeks.

Since the house is a total loss the new owner’s first job will be to completely demolish the shell, cart the debris off and then go toe-to-toe with San Francisco housing regulators for however long it takes to get approval to build a new home.

And God help him if an Indian happened to drop a bead on his new property sometime in the distant past. Then the 1,700 sq. ft. lot would become an archeological site!

In a rational real estate market the ruins-owner would clear the lot before listing it and the new owner would build from there. Unfortunately, one of the first benefits of living in a city run by leftists is rational market principles are repealed.

It’s so hard to build new housing in San Francisco and demand is so high that the few properties on the market benefit from vastly inflated prices, even if they are charcoal broiled. Housing prices are so high due to crushing government regulation and limits on building that a couple earning $140,000 a year qualifies for government-subsidized “affordable housing.”

As Axios.com pointed out, “… jobs are disappearing not for want of work, but because employers are finding it hard to fill positions due to limited housing and sky-high prices.

The good news for the owner is his ruins will probably sell quickly and possibly for higher than the listing price, since the lot is close to “a main drag populated by small markets, cafes, restaurants, and nail salons.”

The bad news for the rest of the city is there won’t be any price relief on the horizon because city hall won’t stop resisting new construction.

Michael Reagan, the eldest son of President Reagan, is a Newsmax TV analyst. A syndicated columnist and author, he chairs The Reagan Legacy Foundation. Michael is an in-demand speaker with Premiere speaker’s bureau. Read more reports from Michael Reagan — Go Here Now.

Michael R. Shannon is a commentator, researcher for the League of American Voters, and an award-winning political and advertising consultant with nationwide and international experience. He is author of "Conservative Christian’s Guidebook for Living in Secular Times (Now with added humor!)." Read more of Michael Shannon's reports — Go Here Now.

© Mike Reagan

   
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In a rational real estate market the ruins-owner would clear the lot before listing it and the new owner would build from there. Unfortunately, one of the first benefits of living in a city run by leftists is rational market principles are repealed.
san francisco, housing regulation, government, real estate
506
2017-21-28
Saturday, 28 October 2017 12:21 PM
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