Photo by Lydia Chávez

It’s official! Two writers have officially called the end of The Boom. It’s over, you guys. It’s done.

So says Wolf Richter, anyway, the author of the Wolf Street blog featured on Business Insider.

“And what a boom it was. Was – past tense because it’s over. And now jobs and the labor force itself are in decline,” Richter writes.

Strike two: According to SFGate, foreign investors are losing enthusiasm for parking their money in San Francisco. With inventory up and prices down, it looks like things may be slowing a bit.

Yes, we have built a crapton of condos in the city. Yes, the supply seems to have dampened the rabid demand. Buuuuut! Curbed, citing studies by Polaris Pacific and Paragon, indicates that this may not necessarily mean the bust is here. Just because things are less hot doesn’t mean they’ve cooled – and demand for other kinds of homes is still rising.

And despite predictions of the end, I doubt this will make much difference in terms of the everyday lives of renters and people trying to find a place to live in San Francisco right now. This “bust” is not a burst, not yet anyway, even if the luxury market is slowing down, and even if that has that mythical “trickle down” effect, it won’t settle down to those of us in the non luxury housing circles until much later.

Oh, and we’re still building away. Here is just a selection of what’s planned locally in terms of construction:

Foraying out of the Mission and into neighboring Potrero HIll for a moment, a reader pointed out to me recently that a second large planned development there is now up for sale. Meaning a developer went to the trouble of planning, proposing, and getting all the permits squared away for an enormous housing project (172 units) and is now looking to get rid of the site and entitlements instead of running the risk of building really expensive apartments that won’t get rented.

Which might not really matter to your average layperson who doesn’t have piles of money lying around to invest into real estate, but could be relevant, as the reader points out, to the housing and even homelessness crisis: A 48Hills investigation indicated that some 32 percent of new market rate units have absentee owners, and though they could possibly be rented out to long term residents, it’s more likely that they sit empty or are used as vacation rentals.

Only two notes this week from the local business world:

Central Kitchen, dismayed by the fact that it is perceived as higher-end, will close for a renovation and reopen in two weeks. It’s not entirely clear from this SFist article how a revamp will make the place less expensive, but that’s the hope.

Also, thrifters, you now have an extra month to visit the Goodwill on Mission Street near 19th, as a new sign in the window indicates they will close in late September rather than August.

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  1. Can you please document how we have “built a crapton of condos”? Especially in the Mission? Data, not hyperbole, please.

    1. Rex,
      It’s clear that your a supply and demand racist. You need to take some sensitivity classes and maybe econ101. Stop being such a racist. Please do not vote for Trump.

        1. These pro development people ate displacing the REAL MISSION residents. Building more luxury housing just makes the area more expensive. Like building more ferraris. New units are small and only for 1 or 2 rich people like a Ferrari, not Familia friendly. I have 6 beautiful children from 4 different lovely ladies. I can’t place them in a studio. Mission needs more free housing for hard working ethnic people. Please do not vote Trump. Vote Bernie give free house to us with granite counter tops and stainless steel. No Trump.