Today I want to clear up a misconception. The left is not uniformly bad for capitalism. There is one market segment where leftist’s bad policy and bad ideas pay off for middle-class owners, if owners are fortunate to be in the market during the window of opportunity.
First it is crucial middle-class owners be in possession either before leftists take control of an area or shortly after leftists assume control. Outside that window one must already be a member of the upper class and currently oppressing the downtrodden masses, because otherwise it is simply too expensive for average Americans to participate in this market.
Naturally, readers are now wondering what is the market and is it the sure-fire investment that “physical gold” promises to be?
I’ll end the suspense and explain the market is housing, more particularly housing in the San Francisco Bay area. A story from the Mercury News proves my point.
A very modest home in Sunnyvale, California — just a stone’s throw from Apple’s new headquarters — recently sold for an astonishing $2 million, which was $550,000 over the optimistic asking price the owners specified when the house went on the market.
Even better for the owners and real estate agent, it sold in only two days.
And when I say modest I was being generous. The home was only 848 sq. ft. in size, which is way under the current average size in the U.S. of 2,600 sq. ft. The story called the lot it was built on “large” at 6,000 sq. ft. but even that is under the median lot size in the U.S. that is currently 8,600 sq. ft. — down from the former 10,000 sq. ft. median in 1992.
The selling price, besides being breathtaking, also set a record for price per square foot: $2,358.
This is what happens when leftists and NIMBYs unite to make it next to impossible to build new homes. Fewer new homes on the market mean the price for existing homes goes up. If you owned a home before the Che fans showed up, the appreciation begins almost immediately. Hold out long enough and your ship comes in.
But miss the window and you can’t afford to buy a home to take advantage of appreciation.
If the seller of this particular house is smart they will take their money and get while the getting is good. I suggest Tulsa, Oklahoma, where the median price per square foot is a mere $89. If you want a bigger city, there is Dallas at $199 per sq. ft.
Looking for something a bit more techy? Austin, Texas, is $206 per sq. ft. and Charlotte, North Carolina, is $138.
And if the seller wants to try and let leftism work its magic again, there’s always Washington, D.C., where the median price per sq. ft. is $539, but they had best move fast. That window is closing, too.
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.