Epitome of a #HousingBubble in #SiliconValley

A new documentary filmed by local Bay Area residents explains it all. This can’t last.

This has got to be the biggest, most glaring sign of a real estate bubble I have ever seen in my entire life (and I was around for the 2004-2008 housing bubble).

RWC-Real-Estate-BuubleYes folks, step right up and get your 700 sq ft home in Redwood City, California, heart of the #SiliconValley, for just $649,000! The American Dream! 1 bedroom, 1 bath for just $3154 per month on a mortgage with super low interest rates if you put down 20%.

AWESOME! I feel so privileged to be in this AMAZING job market, this AMAZING country! Only in America!

If you pay the mortgage back according to the standard 30 year schedule, in April 2045 you will have paid $1,135,721 for a tiny little fucking shack.  BRILLIANT!

My question is, who would pay this kind of money for a little shack? Who has the intellectual capacity to make enough money to afford the place and yet choose to “invest” in a tiny shack?

See all the glorious details of this wonderful home here.

mortgage on a shack

3 comments

  1. Pingback: How Soaring Housing Costs Maul the Real Economy | Olduvai.caOlduvai.ca
  2. Mark Alexander · May 12, 2015

    When I was living at the Buena Vista Mobile Home Park in Palo Alto in 2008, I saw a 700 square foot house a half block away selling for $700K. At $1K per square foot, the place must have had gold-plated floor tiles. This shack in Redwood City is a real bargain by comparison!

  3. Pingback: Wolf Richter: How Soaring Housing Costs Impoverish a Whole Generation and Maul the Real Economy | naked capitalism

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