What is the current situation in San Francisco, where housing costs are too high and residents move away from the city?


by

Alexander Mils

The San Francisco Bay Area , including San Francisco on the west coast of the United States and nearby cities, is known as one of the world's leading high-tech companies. There are many people living in the San Francisco Bay area, but housing costs are too high, and there is a current situation where residents are leaving.

California housing crisis: Residents flee San Francisco because of costs
https://www.usatoday.com/story/news/nation/2019/10/19/california-housing-crisis-residents-flee-san-francisco-because-costs/3985196002/

Sara Trip and husband Robby, who runs lifestyle blog Sassy Red Lipstick , moved to San Francisco in 2016 with hope. “We thought the city was full of opportunities and connections to work hard and succeed,” says Sarah, but finding a home for them was very difficult.

Mr. and Mrs. Trip have been searching for a comfortable home for over a year, but only found 'a small shack that needs to be renovated, but it costs $ 1 million'. Two people lived in a rental property with a monthly rent of $ 2500 (about 275,000 yen) and a bathroom for two years, but finally decided to leave San Francisco . The new property I bought in Phoenix , Arizona, had four bedrooms and four bathrooms, and wasn't very accessible in San Francisco.

Trips said that living in the Bay Area was “attractive to live near many high-tech startups. But in the Bay Area, if you were not part of the startup, you would get kicked out quickly. It ’s sad. ”


by

Pixabay

The Bay Area has been a fascinating place for entrepreneurs attracted by technology for nearly 20 years. As a result, the housing price is the highest in the western part of the United States, and when it comes to petrol, education, and restaurant expenses, it has become a city that costs twice as much as the US average.

According to the migration report released by real estate agent Redfin , as many as 28,190 people are leaving San Francisco in the second quarter of 2019 alone, and San Francisco is fighting for the top in the United States. It ’s a city.

The image below shows the median home price for each city. In San Francisco, the median home price is $ 1,466,900 (about 160 million yen), while Los Angeles is $ 632,500 (about 70 million yen), Seattle is $ 580,000 (about 64 million yen) You can see that both cities have more than twice the difference. The trip to Phoenix where the couples purchased the property was $ 280,000 (about 30 million yen). California as a whole also has a spillover trend, with nearly 38,000 more spillers than inflowers in 2018, with 53% of residents considering migration due to high living costs There is also a survey result (PDF file) .



Austin, Texas, which has no income tax as a state tax, is a city that has gained popularity in recent years as a destination from California, including the Bay Area. Austin noted that there were 5403 new migrants in the second quarter of 2019, many of whom were from San Francisco.

In terms of median household income, the Bay Area is at a high level of $ 100,000, which is enough to live in most American cities. However, after the federal and state taxes have been subtracted, the monthly rent of about $ 3,600 (about 400,000 yen) per month, and about $ 4,600 (about 500,000 yen) for Silicon Valley has put pressure on life, resulting in low income. There is also a reality that people have no choice but to become homeless or live on the car.

Entrepreneurs and politicians are also paying attention to the expanding housing crisis, and Mark Benioff , co-CEO of Salesforce.com , the leading cloud company, has decided to tax large companies to solve the homeless problem Strongly supported the bill . California Governor Gavin Newsum is also working on housing issues and has come up with measures to fund low-income housing and limit rent increases. In October 2019, Newsam said, “We live in the poorest state at the same time as the richest in the United States. Cost of living is the biggest problem in California.” Said.


by

Lukas

Despite rising awareness of crisis across California, rising home prices are not an easy problem for middle class people whose daily expenses are under pressure. Hailey and Jim Casey from San Jose , California, lived in a small house purchased in San Jose in 2016 and thought they could live happily together. But when a child was born between the two, Casey and his wife decided that they couldn't buy a bigger house anymore. They decided to leave the San Jose house and move to Austin. “Austin has a flexible and family-friendly life,” says his wife, Hailey.

Deborah and Justin Neissler, who bought a house near the highway leading to Silicon Valley in 2006, also decided to leave San Francisco. When the second child was born and the house became too narrow, Mr. and Mrs. Neissler, who acted as real estate brokers, told me that the price was 66% higher than at the time of purchase. Decided to sell. “I miss San Francisco, but it's not the best place for my family,” the couple commented.

Joel Kotkin , a city researcher at Chapman University in California, said, “California requires a middle class. A society without middle class is an ill-fated society,” and middle class people outflowed from California. The current situation is dangerous. Scott Wiener , a California senator, also said, “We can't support the middle class people, we ca n’t hire workers, the restaurant closes, and teachers, police officers and other civil servants “I am facing a future where I cannot live near my workplace,” he said, “We should feel a great sense of urgency.”


by Gary Denham

in Note, Posted by log1h_ik