The Chronicle’s Commercial Real Estate column today reviews a speech by a prominent Wharton professor who has nothing but good things to say about the San Francisco commercial market.

“According to Linneman’s analysis, the combined supply and demand effects of the housing market — low interest rates, rising incomes, population growth and modest home construction — is almost statistically equal to the rise in home prices, meaning that the market is not out of whack but in equilibrium.”

“Another factor, which Linneman called the “grandpa-and-grandma effect,” refers to the transfer of wealth from the hard-working, self-sacrificing World War II-era generation to the coddled and overly programmed offspring of Boomers – the Echo Boomers.”

“The wealth transfer, whether it’s in the form of annual gifts or a huge down payment on a house or condo, is allowing a significant cohort of 20- and 30-somethings to glide right into the housing market, Linneman said.”

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