Starting in the 1990s, the city of San Francisco, and the surrounding San Francisco Bay Area have faced a serious affordable housing shortage, such that by October 2015, San Francisco had the highest rents of any major US city. The nearby city ofSan Jose, had the fourth highest rents, and adjacent Oakland, had the sixth highest. Over the period April 2012 to December 2017, the median house price in most counties in the Bay Area nearly doubled. Late San Francisco mayorEd Lee has called the shortage a "housing crisis", and news reports stated that addressing the shortage was the mayor's "top priority".
Causes
Since the 1960s, San Francisco and the surrounding Bay Area have enacted strict zoning regulations. Among other restrictions, San Francisco does not allow buildings over 40 feet tall in most of the city, and has passed laws making it easier for neighbors to block developments. Partly as a result of these codes, from 2007 to 2014, the Bay Area issued building permits for only half the number of needed houses, based on the area's population growth. At the same time, there has been rapid economic growth of the high tech industry in San Francisco and nearby Silicon Valley, which has created hundreds of thousands of new jobs. The resultant high demand for housing, combined with the lack of supply, have caused dramatic increases in rents and extremely high housing prices. For example, from 2012 to 2016, the San Francisco metropolitan area added 373,000 new jobs, but permitted only 58,000 new housing units.
Effects
The city of San Francisco has strict rent control laws. However, a California state law called the Ellis Act allows landlords to evict rent-controlled tenants by going out of business, and fully exiting the rental market. In recent years, hundreds of tenants have been evicted through the Ellis Act process. Due to the advances of the city's economy from the increase of tourism, the boom of innovative tech companies, and insufficient new housing production, the rent increased by more than 50 percent by the 1990s. Many affluent tech workers migrated to San Francisco due job opportunities and lack of housing in the South Bay. Until the end of the 1960s, San Francisco had affordable housing, which allowed people from many different backgrounds to settle down, but the economic shift impacted the city's demographics. All of this resulted in constant gentrification of many neighborhoods. Residents of areas such as the Tenderloin and The Mission District, which house many immigrants and low-income families, are faced with the possibility of eviction, in order to develop low-income housing to more luxurious housing, which caters to the advances of the economy. For example, residents of the Mission District experienced 14.2 percent of the citywide evictions in the year 2000. The effect of housing policies has been to discourage migration to California, especially San Francisco and other coastal areas, as the California Legislative Analyst's Office 2015 report "" details:
"If California had added 210,000 new housing units each year over the past three decades, population would be much greater than it is today. We estimate that around 7 million additional people would be living in California. In some areas, particularly the Bay Area, population increases would be dramatic. For example, San Francisco's population would be more than twice as large."
Responses
Housing has become a key political issue in Bay Area elections. In November 2015, San Francisco voters rejected two ballot propositions both of which were claimed by their supporters to reduce the crisis. The first, Proposition F, would have enacted a number of restrictions on Airbnb rentals within the city. The second, Proposition I or the "Mission Moratorium", would have blocked all housing development in San Francisco's Mission District for 18 months, except for developments in which every apartment was subsidized at a below-market rate. To address evictions, San Francisco City Supervisor David Campos passed two new city ordinances, each requiring landlords to pay tens of thousands of dollars to each tenant evicted under the Ellis Act. The first ordinance was struck down as unconstitutional under the Fifth Amendment, while the second was rejected as contrary to California state law. Mayor Ed Lee responded to the shortage by calling for the construction of 30,000 new housing units by 2020, and proposing a $310 million city bond to fund below-market-rate housing units. The goal of 30,000 new units was approved by San Francisco voters in 2014's Proposition K, and the affordable housing bond was passed in 2015 as Proposition A. Then City Supervisor Scott Wiener has criticized the advocates of anti-development laws, writing an article titled "Yes, Supply & Demand Apply to Housing, Even in San Francisco" in response to Proposition I. Wiener called for greatly increasing the supply of all housing, including both subsidized housing and housing at market rate.
