This leads people to irrational decisions concerning the city (like running in the opposite direction.)

Usually they were being irrational and were just venting, but it becomes exhausting to be on the butt end of such venting time and time again.

You can't deal sensibly with someone who is so irrational.

He's not being irrational. 

There is a lot of irrational behaviors in the stock market and real estate is a much safer investment vehicle as we near end of 2020.

-My biggest struggle as an agent has been learning that you cannot make decisions for your clients, even when they are clearly making an irrational one.

I don't think it's a bubble, although it might resemble one in your area. '06 was different. the property values were artificially inflated nationwide. mortgages for virtually any amount could be gotten, i.e.100% financing, no proof of income. even appraisers were in on the action. mortgage brokers and lenders were making a fortune because everybody wanted a bigger house, irrespective of the ARMs and outrageous rates. lenders didn't care if people defaulted because they were passing the proverbial hot potato by bundling all those crappy mortgages and selling them to investors as mortgage backed securities. it was coined "irrational exuberance" (patial thanks to alan Greenspan, but he's a separate topic not worth exploring here). easy money created high demand for a relatively low supply. prices went through the roof. until it all crashed.fast forward to '16. lending standards have tightened and prices are back to normal levels. interest rates are low and that's good but you actually have to be qualified to get a mortgage these days.  

It sounds like you have an irrational and reluctant borrower and we'll just have to deal with it at eviction.

its one thing for locals like yourself but if the best U can do is as described above its not a wealth builder on any level.. there just seems to be some irrational exuberance on these low end rentals  or should I say non appreciating assets with next to no cash flow.. just because they get into them with little cash or get a little back. your still tying up a very valuable loan slot.

Your thoughts are rationale, but someone who looks at the San Diego RE history and buys based on performance is not irrational, as crazy as that seems.