Who creams off the prosperity bonanza

Nov 6 Excellent apartment,near shenkin street ! ₪2650000 1br - 48m² - (Heart of TLV)
(= 757000 US$)


 
Enrico Moretti in the New York Times via the excellent MR blog:

Over the past two years, San Francisco County added 38,000 jobs, reaching its highest employment level ever. Yet only 4,500 new housing units were permitted. For all those new families knocking on San Francisco doors, new units are available for less than 12 percent of them. The numbers for Silicon Valley are even worse. This is why the rents skyrocket.
 

The problem is largely self-inflicted: the region has some of the country’s slowest, most political and cumbersome housing approval processes and most stringent land-use restrictions.

…One way to think about it is that the enormous increase in wealth generated by the tech boom is largely captured by homeowners in the urban core who bought before the boom.

In Israel we have the same situation. The sheqel is overvalued and is the second most expensive currency (the first: the yen). Building permits in Tel Aviv are in-achievable, it takes from five to ten years. Two room old apartments sell for a seven hundred thousand dollars (pic). I am selling TASE shares and buying NVIDIA on Nasdaq.