My friends keep moving to Oakland. Gone from San Francisco for greener pastures and cheaper rents, because it’s just gotten too hard, by which I really mean too expensive. Their move signals that something has gone terribly wrong in this most progressive of American cities.
In some ways, we came by the problem innocently. San Francisco had the good fortune to be one of the very few 19th century industrial cities to successfully make the transition to a new, post-industrial economic base. It wasn’t just bohemians who set up shop here—all kinds of entrepreneurs and creative business people decided to call San Francisco home. As wave after wave of older industrial jobs moved out of town, new types of work were created to replace them.
At the same time, San Francisco was a great place to live. Partly from historical inheritance and partly from the work of activists who chose to make the city the focus of their activism, the city remained a walkable, urban paradise compared to most of America.
A great quality of life and a lot of high-paying professional jobs meant that a lot of people wanted to live here. And they still do.
But the city did not allow its housing supply to keep up with demand. San Francisco was down-zoned (that is, the density of housing or permitted expansion of construction was reduced) to protect the "character" that people loved. It created the most byzantine planning process of any major city in the country. Many outspoken citizens did—and continue to do—everything possible to fight new high-density development or, as they saw it, protecting the city from undesirable change.
Unfortunately, it worked: the city was largely "protected" from change. But in so doing, we put out fire with gasoline. Over the past two decades, San Francisco has produced an average of 1,500 new housing units per year. Compare this with Seattle (another 19th century industrial city that now has a tech economy), which has produced about 3,000 units per year over the same time period (and remember it's starting from a smaller overall population base). While Seattle decided to embrace infill development as a way to save open space at the edge of its region and put more people in neighborhoods where they could walk, San Francisco decided to push regional population growth somewhere else.
Whatever the merits of this strategy might be in terms of preserving the historic fabric of the city, it very clearly accelerated the rise in housing prices. As more people move to the Bay Area, the demand for housing continues to increase far faster than supply.
There’s a lot of housing under construction now, and for the next couple of years, we’ll see more built. But a few years of strong housing production, building out neighborhood plans that the city has worked on for the last two decades, is going to be too little, too late to undo the larger trend. Absent any transformative approaches, new housing construction is likely to return to its normally low levels after the current round of building is finished.
Railing against Google buses, fancy restaurants or new condos—the visible signs of gentrification—will do nothing to stop San Francisco from becoming more expensive. These are not causes of the rising rents; they are symptoms. The root cause is that many people have chosen to live in San Francisco, and we are now all
In some ways, we came by the problem innocently. San Francisco had the good fortune to be one of the very few 19th century industrial cities to successfully make the transition to a new, post-industrial economic base. It wasn’t just bohemians who set up shop here—all kinds of entrepreneurs and creative business people decided to call San Francisco home. As wave after wave of older industrial jobs moved out of town, new types of work were created to replace them.
At the same time, San Francisco was a great place to live. Partly from historical inheritance and partly from the work of activists who chose to make the city the focus of their activism, the city remained a walkable, urban paradise compared to most of America.
A great quality of life and a lot of high-paying professional jobs meant that a lot of people wanted to live here. And they still do.
But the city did not allow its housing supply to keep up with demand. San Francisco was down-zoned (that is, the density of housing or permitted expansion of construction was reduced) to protect the "character" that people loved. It created the most byzantine planning process of any major city in the country. Many outspoken citizens did—and continue to do—everything possible to fight new high-density development or, as they saw it, protecting the city from undesirable change.
Unfortunately, it worked: the city was largely "protected" from change. But in so doing, we put out fire with gasoline. Over the past two decades, San Francisco has produced an average of 1,500 new housing units per year. Compare this with Seattle (another 19th century industrial city that now has a tech economy), which has produced about 3,000 units per year over the same time period (and remember it's starting from a smaller overall population base). While Seattle decided to embrace infill development as a way to save open space at the edge of its region and put more people in neighborhoods where they could walk, San Francisco decided to push regional population growth somewhere else.
Whatever the merits of this strategy might be in terms of preserving the historic fabric of the city, it very clearly accelerated the rise in housing prices. As more people move to the Bay Area, the demand for housing continues to increase far faster than supply.
There’s a lot of housing under construction now, and for the next couple of years, we’ll see more built. But a few years of strong housing production, building out neighborhood plans that the city has worked on for the last two decades, is going to be too little, too late to undo the larger trend. Absent any transformative approaches, new housing construction is likely to return to its normally low levels after the current round of building is finished.
Railing against Google buses, fancy restaurants or new condos—the visible signs of gentrification—will do nothing to stop San Francisco from becoming more expensive. These are not causes of the rising rents; they are symptoms. The root cause is that many people have chosen to live in San Francisco, and we are now all



