It is very simple: The market belongs to sellers!
Demand remains high, inventory low, interest rates are “dirt cheap” and less than the early 1950’s. Price per square foot is rising on resale homes. From your perspective, your larger square footage, existing homes are increasing in overall dollar amount faster than the total construction costs for smaller Bretton Woods homes.
However, new home construction costs continue to rise and supply lines for materials are strained. The new home construction industry is an unintended and unexpected beneficiary of COVID-19 and the results caused by state mandates.
While other Northern California cities will fiscally benefit from the Bay Area exodus, in Davis, the beneficiaries will be current homeowners, not the City coffers.
On a personal note, look at your property tax bill and count the number of special school taxes. These result primarily from four decades of narrow-minded thinking by the City and school leaders listening entirely to no-growth advocates, thus drastically reducing the building of homes for families with school-age children.