Rent in San Francisco
Rent in San Francisco

San Francisco's corrupt city government isn't precisely the cause of the high rent prices. But, that's only because it's inept at city governance.

There is not enough office or living space in San Francisco because of the "humanitarian" laws passed of the last century. Ignorance of basic economics and community backlash make addressing the problem nearly impossible.

Rent Control

Rent control does not control rents. It suppresses prices; which increases demand; which decreases supply. That should increase prices and complete the cycle, but … rent control.

We're left with suppressed prices in rent controlled buildings and inflated prices in new buildings. New buildings target the upper classes that can afford the high prices. Rent control should help the lower classes. The irony. The mismanagement. Only the wealthy are benefiting from the current situation.

Change in Population and Housing Units in San Francisco 1990-2014
via @michaelprhodes

Building Ceiling

“It appears the Giants have touched all the bases with this revised project,” Agnos said. “And those bases are: reasonable heights, increased affordable housing, open space and neighborhood-serving retail to bring some spark to what is an unfinished neighborhood. Assuming all this bears out in the writing of the measure, I think they have done a terrific job of revising the project.”

via Giants add affordable housing, shorten heights in building plan

San Francisco is a six by six mile square of land edged on 3 sides by ocean with a mountain range in the middle. There's only so much space to put people, it long ago hit the limit, and more and more people want to move it. If the city wants to expand, it can only do so by building vertically. The laws of physics and whatnot.

Just to fill the existing deficit, the Building Industry Association of the Bay Area, which represents home builders, projects that the region should be permitting 2,224 units per month on average, or about 27,000 per year.

Bay Area building boom may not end housing shortage

Yet, the city's people seem intent on "maintaining the character of the city" or "protecting the environment" by capping new buildings to four stories. There are exceptions, but the areas that are slated for development cover a comparatively small portion of the city.

Miami took the opposite approach: it provided a larger area for new growth which it has enjoyed while keeping it's cultural communities. New people will move to the city, shutting them out doesn't work for either group.

via @SFBTCory

Again, the inept city government helps no one. Ballot measures like 2014's Prop B, which are confusingly worded do all they can to work with special interests and not the interests of the city's future.

The problem is that San Francisco won’t build housing, and making matters worse, residents work tirelessly to prevent more housing from being built.

…let’s look at what San Francisco has in fact built. Not very much! Between 2005 and 2015, San Francisco (city/county) added 26,770 new units, according to housing permits data provided by Trulia. That’s one-quarter of the housing units built in the San Francisco metro area, one-half of what was built in the San Jose metro area, and just 17 percent of the total units across the entire Bay Area. Sad.

What's Really to Blame for San Francisco's Housing Crisis

Tenderloin

Search for a San Francisco Crime Map and look for the red area. It's a small neighborhood, centrally located in the city, near the high-market shopping district.

The Loin is a great location, mandated by turn of the century laws to maintain single occupancy apartments, supposedly for migrant labor. The Loin is trying to become a modern, crime free, property, but it's completely hamstrung by crazy laws, outdated thinking (what homeless person can afford $1000/month in rent?), and political non-starers (we can't make all those poor people homeless). The Loin is ripe for revitalization. Forget the 100 year old zoning laws, allow the community to start modernizing itself.

A Few Concrete Things To Do

Without a solution, San Francisco rents are going to remain outrageous. Already, I see people moving away from the city to live in surrounding areas and commuting into the city. While some of this is inevitable, Oakland is a major city in its own right, and it has reasonable rents, and is on the upswing.

The city should do the following:

San Francisco only recently got the spotlight away from Silicon Valley. If it's not careful, it'll price itself right back out.

Also Read

There are many great links in the article, but you can also read:

image by gravitywave on flickr
Rent in San Francisco

Joey Baker

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I write code most days. Prevously: photojournalist, EMT. Somewhat obsessed with jouralism.