Funny thing about this theory: the luxury housing market in San Francisco is in decline, and yet, it&#x27;s still a seller&#x27;s market for middle- and down-market properties. [1][2]<p>This is not surprising to anyone who follows real estate. There&#x27;s no such thing as &quot;a market for housing&quot; -- there are several markets, each moving more-or-less independently, based on the net worth of the participants involved. A drop in the prices of units in the Millenium Tower doesn&#x27;t have much of an impact on the rent of a pre-war hovel in the Mission.<p>The reason that the author doesn&#x27;t understand this is because there&#x27;s a latent correlation at play: the communities with the most high-end construction <i>tend to have the most construction overall</i>. But in a city like SF, where <i>all</i> of the new construction would be high-end (if so allowed), all bets are off.<p>Observing that properties become cheaper as they age is also silly. There are <i>some</i> properties that become cheaper as they age, but there aren&#x27;t many of them, say, in Pac Heights.<p>[1] <a href="http:&#x2F;&#x2F;wolfstreet.com&#x2F;2015&#x2F;11&#x2F;08&#x2F;san-franciscos-luxury-condo-bubble-turns-into-condo-glut&#x2F;" rel="nofollow">http:&#x2F;&#x2F;wolfstreet.com&#x2F;2015&#x2F;11&#x2F;08&#x2F;san-franciscos-luxury-condo...</a>
[2] <a href="http:&#x2F;&#x2F;sfist.com&#x2F;2015&#x2F;11&#x2F;09&#x2F;at_high_end_sfs_housing_market_fina.php" rel="nofollow">http:&#x2F;&#x2F;sfist.com&#x2F;2015&#x2F;11&#x2F;09&#x2F;at_high_end_sfs_housing_market_f...</a>