Monday, March 28, 2016

San Francisco real estate isn't anywhere near a bubble

KB Home CEO, who profits from when people commission new homes to be built, says that there is not a real estate bubble happening in San Francisco Bay Area that would cause his business to tank. Not surprisingly California has one of the highest household debt per capita in the country. They also have higher incomes. A few things can happen in the future incomes rise or incomes fall, debt rises or debt falls. The only one things I an hundred percent sure debts will rise in the next few years. I think incomes will rise too. But problems will start when incomes don't rise. The possible scenarios is that overvalued companies that do not grow into their valuation will attempt to cost cut through layoffs. Obviously layoffs push down incomes. Mortgage defaults come after incomes dip.

Smartwatch company Pebble, the buzzy startup credited for being one of the first companies to launch a modern smartwatch, is laying off 40 employees this week. The company joins the chorus of San Francisco Bay Area startups and tech companies that recently are scaling back:

AutoDesk
Zenefits
 Yahoo
 GoPro
SurveyMonkey
LivingSocial
MixPanel
Instacart
Optimizely
Zynga
HomeJoy
Twitter
Sidecar
VMWare
AutoDesk
KaBam
Tango
NetApp
Avid Technology

Startup Box sub-leases the office space at Crossing/900 in Redwood City, to Pebble Smartwatch, so who will take that space now and who will live in the luxury apartment near Caltrain stations.

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