Google’s homes will have little impact on prices

Any new housing in the San Francisco Bay area is welcome, but Google’s plan to help build 20,000 homes over the next decade will have little impact on prices. The San Francisco metro has the tightest housing market in the country, and any new homes will quickly be absorbed. That said, with affordability constraints biting, we doubt that house price growth will rise above 5% y/y over the next couple of years.