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Here's a concise explanation: SF is close (enough) to East Asia and is a convenient sink for the money laundering / "investment" you can do through real estate.

Similarly, Miami in the 80s was close enough to South America to be an easy sink for the money laundering / "investment" you can do through real estate.

When ~1/3 of new construction is unoccupied & held as investment it sure seems like the driving force at the margin.

http://www.48hills.org/2015/01/27/sf-planners-yawn-vacant-un...




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