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Housing Affordability in San Francisco, CA

The Golden City is the second most expensive city in the entire world, according to Business Insider rankings



Yep, You Read That Subtitle Right

Second in the world. In. The. World. And it's an entirely man made crisis, with some outlets referring to it as "self-inflicted."


It begins in the 70s ... err the 1870s ... when the first zoning law was enacted. Referred to as the Cubic Air Ordinance, the law established a minimum space-per-tenant requirement for all new housing units in the city. At the time, it was heralded as a noble and brilliant policy, designed to improve the living conditions of city residents. But with the benefit of hindsight, the policy was disastrous, if only for establishing a dangerous precedent that lead to the city's second-place ranking.


In the Zone-ing

Nearly one hundred years later, the city continued its streak of enacting disastrous zoning regulations. Throughout the twentieth century, local leaders passed laws to limited the height of most buildings in the city to 40 feet, and they made it easier for neighborhood groups to block local developments.


But why does height limit matter? If you can't build up, then build out, right? Wrong. In terms of geographic size, the city is relatively tiny compared to most cities. Building up solves many of the issues faced by most cities. Height is hyper-efficient for housing more residents. And there are a multitude of peripheral benefits, too. If you live closer to your workplace, such is the case of living in a downtown high-rise, your commute to work will likely involve public transportation, walking, or cycling - not a gas-guzzling car. Not to mention, the benefits of building a tighter-knit community and increased consumption at local business. It's a no-brainer: build up, not out.


But, no, the city did not follow these urban planning recommendations. The height limits in San Francisco had disastrous effects. One study found that between 2007 to 2014, the city issued permits for only half the number of housing units needed to accommodate the corresponding population growth.


A Full-Blown Crisis

As the city grew in the 1990s and early 2000s, largely in part due to the tech boom, rent prices increased by more than 50%. This forced out thousands of residents who struggled to keep up with rent payments. Gentrification and homeless are rampant in many parts of the cities. Low-income residents were evicted en masse, displaced by expensive, luxury housing.

As one blogger put it, "San Francisco has gone from having a housing crisis to being a housing-crisis meme: the supercommuters, the homeless teachers, the poop on the sidewalk."

Hope and Optimism

Where there are cynics, there are optimists. This issue has struck a chord with many young people across the Bay Area. Activists groups such as San Francisco Bay Area Renter's Federation have began gaining ground in recent years. Former SF City Councilman Scott Wiener - now State Senator - has become the new face of YIMBY activism. He's tried and failed multiple times to pass statewide reforms to zoning policies that would make it easier for renters to find housing across the state.


But Weiner isn't giving up. As each day passes, it becomes increasingly imperative to address these issues. The movement grows larger. Voices become louder. And victory draws closer. As California becomes the epicenter of the national debate around housing, it will certainly be the state to watch for new housing reforms. I have great confidence that it, too, shall pass.

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