If you have a property for sale in San Francisco, USA, you will know that there is a housing crisis in the city, considered to be one of the best places to live in the world.
Home prices have been rising very fast – which is good news for you if you want to sell your apartment in San Francisco, USA quickly, but not so much for those looking for a place to stay in the city. Consider this – a one-bedroom apartment rents for over $3,500 a month in the San Francisco Bay Area! This is as high as you get, even higher than most areas in London and New York.
There are many reasons why home prices here are so high. It could be because there is a severe supply – demand mismatch, with the demand by far exceeding the supply of housing stock. The highly restricting zoning and environmental laws have made it very difficult for people to build new homes in this city.
Add to this, the greed of the landlords – who unfailingly take advantage of the situation and raise rents every year. The demand for high end housing is very high and this has jacked up home prices for the rest of the market.
While San Francisco is home to many millionaires and billionaires of the tech industry, who can afford the high home prices here, things are not so easy for a vast majority of tech workers. They certainly earn a good income, compared to the rest of the US population, but that’s nowhere close to enough to live a comfortable life in San Francisco, one of the world’s most expensive cities.
This has led to a number of tech workers living in impossible conditions, with 10 to 12 people sharing a small apartment, or some even living in trucks or boats, unable to afford the high cost of housing here.
It is practically impossible for middle income families to buy a house in San Francisco, USA online because an average property for sale here costs $1.158 million – which is far beyond what most people can afford.
What has the local administration done to fix the housing crisis in the area? Well, there is a lot of talk on what needs to be done, but there haven’t really been any concrete steps taken so far.
Everyone seems to have an opinion on how to fix the problem, but there doesn’t seem to be any agreement among the concerned parties. The Bay Area Council Economic Institute released a report on what needs to be done to solve the housing crisis in San Francisco area. The recommendations are simple – increase the housing stock in the city.
Clearly, the only way to reduce home prices is to substantially increase the number of homes in the San Francisco Bay area. But this is easily said than done as there are many restrictions against any new real estate development in San Francisco and getting a building permit takes several months. So, there are no easy solutions to the problem.