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Week 7 [7.12-13.12] Housing crisis in San Francisco

 Today it is believed that IT professionals have high-paying salaries. That is not always truth. Although salaries may seem humongous comparing to other sectors, most of it has to be spent on current expenses such as housing, transportation, electricity and food. Especially on accommodation because of the extremely high rent prices

According to San Francisco HOMELESS COUNT & SURVEY COMPREHENSIVE REPORT from 2019 “As of 2019, the city of San Francisco was believed to have approximately 8,035 homeless residents, 5,180 of whom are unsheltered.”. That is only the people that are living on the streets or in shelters. We could add to them people who’re staying in campers or have to live a three-hour drive from their job. And the biggest issue of high renting prices is not neighbouring Silicon Valley but very limited housing. That is the main reason why only the wealthiest can afford to live in the city.

Google headquarters
Google headquarters; source: https://media2.govtech.com/images/940*630/SHUTTERSTOCK_GOOGLE_HQ_MOUNTAIN_VIEW_CALIFORNIA_ANDROID.jpg

Sometimes even the salaries of IT specialists are not enough to afford sustainable housing. With the average salary technicians can barely afford a single bedroom and often it does not pay off. Some of them prefer to rent only a bed in a multi-person apartment which can look like a cheap hostel. A few years ago we could read about a guy that chose to pay $400 to live in a box in his friend’s apartment.

 

That's what $400 box "bedroom" in San Francisco looks like
That's what $400 box "bedroom" in San Francisco looks like; source: https://i.guim.co.uk/img/media/ffcfdec9e86d74dee4da236cd1462d4582d0c473/0_387_4032_2418/master/4032.jpg?width=620&quality=85&auto=format&fit=max&s=8cceb188fd9037a1d874f02982894b12

But no city can function with only IT specialists. What about all the teachers, firefighters or service-industry workers? They surly can’t afford at least a decent house for them and their families. These people are the ones that have to drive 2-3 hours to their work. There is also coronavirus crisis.

 

Since the start of the coronavirus outbreak the number of tents in the Tenderloin district have went up drastically up to 285%. Many people lost their jobs. Because of the lockdown many industries are being closed down. As always it mostly affected these less fortunate ones who are the bottom of the social ladder.

Bernie Sanders and Alexandria Ocasio-Cortez
Bernie Sanders and Alexandria Ocasio-Cortez; source: https://static01.nyt.com/images/2018/07/24/us/politics/22ocasiocortez-1-print/21ocasiocortez-square640.jpg

You may ask yourself: What has the city of San Francisco done to prevent such a crisis? The answer is the same as always in case of any form of USA government help: nothing. There is almost no social policy in the USA and San Francisco is a perfect example of how significant the gap between the riches and the working class is. Because of years of anti-socialist propaganda even the people with the lowest income do not want any change. From the European citizen’s point of view it may seem extraordinary, but you can clearly see the change in young Americans in the way they vote. They want more social justice, stable housing prices and living wages.

 

1.      1. Do you think that the housing market should be controlled by the government? If yes, in what extend? If no, why not?

2.      2. If your company gave you an opportunity to move to Silicon Valley, would you take it?

3.      3. Is living in a box is too extreme for you? Would you do it if it meant you spending less on your rent?

Sources:

https://www.vox.com/a/homeless-san-francisco-tech-boom

https://www.theguardian.com/commentisfree/2016/mar/31/san-francisco-high-rent-creative-living

https://www.vox.com/2019/3/19/18256378/tech-worker-afford-buy-homes-san-francisco-facebook-google-uber-lyft-housing-crisis-programmers

https://www.theguardian.com/world/2020/may/19/a-true-emergency-covid-19-pushes-homeless-crisis-in-san-franciscos-tenderloin-to-the-brink

https://hsh.sfgov.org/wp-content/uploads/2020/01/2019HIRDReport_SanFrancisco_FinalDraft-1.pdf

 

Comments

Viktor Ryś said…
1.
I think there should be some form of control from the government in the number of social housing.

2.
I probably would, I'm still at the age where I haven't seen the world so living in a place quite exotic for us as Silicon Wally is would be a no-brainer for me.


3.
When I was a younger student I used to live in quite extremely small rooms, so I know that one can get accustomed to it. If it wasn't long-term and I wouldn't need to share my appartment with anyone then I think I would be able to live there.
@Viktor Ryś I have similar thaughts. If I don't have to live there for a long time I think I'd be fine with it, I don't need much space for myself. Anyway, thanks for your oppinion :)
1. No, I believe the government should not interfere in the housing market. If someone live in such conditions at such a price, let him live like that - it's his choice.

2. No, I wouldn't have gone to Silicon Valley if my employer had sent me there. I do not know what is interesting there that I could not get at home in Europe. Another pathology where people are told that 2-3 room apartments are called apartments?

3. If this "box" were at least 100 square meters there would be no problem. However, if we are talking about the example from the article, we should only sympathize and can sponsor such a person to visit a psychiatrist.
1. I don't think that the housing market should be controlled by the government. Costs are simply higher in cities than in rural areas.

2. It's a hard decision for me. It might seem that America is a great place to live, but in reality, it's not. Maybe only if my salary would be high then I would decide to move. And after saving some money I would probably come back.

3. If you are referring to the box in the picture - this practice should be illegal. For real it looks like a cage with a monthly subscription except without a lock. But when it comes to micro-apartments (like 20m2 and smaller) that are nicely organized then why not.
I do believe that housing should be socialized. In most major cities, there are enough apartments to house every single inhabitant already, so I consider it both a travesty and a crime against humanity that our system denies safe housing to people, instead letting it be accumulated in the hands of the wealthy few as vehicles of high and extortionate rent or even worse, as speculative financial instruments that stay empty and useless. The usual counter-argument rooted in a lack of financial incentive to construct new housing seems rather quaint when not only do we have more than enough housing in most places already, but the populations of developed countries all display a tendency to level off at a stable number. The implication of this is that we don't actually need that much in the way of new house development, and will have to eventually switch towards an industry more focused on renovation and maintenance.
The most egregious example of how badly housing is handled by the market is actually China, where there are entire ghost cities filled with privately owned, but uninhabited housing which exists solely as a speculation and financial vehicle for when people eventually move in to the city, if it ever happens. It's unacceptable for our society to waste resources and labor like this. Moreover, it's fundamentally not sustainable. Populations level off, and the result of expecting the population growth to continue infinitely will always be entire ghost cities like in China.

I would absolutely never move to Silicon Valley, or to the US in general. I have health issues that make risking the notoriously bad american private healthcare an extremely foolish proposition for me.

I don't actually mind living in small spaces per se, however I do mind if they're not quiet. Sound pollution, especially from human activity in neighboring housing units, is extremely exhausting for me. In my experience, smaller apartments tend to have a greater issue with sound, as there is no escape if you're being hounded by outside noise, no other room to move to. So while I am willing to compromise on space to an extent, I'd still prefer to have at least some space to retreat to if my main living space is too noisy for me at that moment.
1. Do you think that the housing market should be controlled by the government? If yes, in what extend? If no, why not?
As far as I know, the housing market is controlled by the government to some extent, but I do not know how in Poland.
So there are market simulators like supply and demand and government measures like taxes and laws. To avoid a crisis in the real estate market, there must be a balance between the market and the state.
My answer is yes, the housing market should be controlled by the government.

2. If your company gave you an opportunity to move to Silicon Valley, would you take it?

Yes, I would use it, I think life there is more dynamic and faster than in Europe.

3. Is living in a box is too extreme for you? Would you do it if it meant you spending less on your rent?
No, I would do this because I lived in dorms and in hostels and in small rooms, in fact, it is very inconvenient, because I need more space. Moreover, at the present time, when you spend a lot of time at home, I think it is unbearable to live in a box.
@Tadeusz Pawlonka thanks for your comment! In my article I tried to bring up this topic because the current housing problem is in so many places, not only in San Francisco. Great point about Chinese housing situation, I wasn't aware of it.
@Paweł Bluszcz I get your point about not moving to the USA - it's much more stable to live in Europe. However, many people fetishize living in the United States based on what they hear on TV or read on the internet, hence the question
Jakub Dzień said…
1. Do you think that the housing market should be controlled by the government? If yes, in what extend? If no, why not?

In my opinion, the only thing the government should control is where new flats and houses are built in order to maintain a reasonable infrastructure. Everything else should depend on the market situation.

2. If your company gave you an opportunity to move to Silicon Valley, would you take it?

I would agree without hesitation. I had the opportunity to be part of a Silicon Valley project and the challenges I faced were completely different to those in my current job.

3. Is living in a box is too extreme for you? Would you do it if it meant you spending less on your rent?

I wouldn't be able to live in a tiny space. I would prefer to let go of other pleasures in order to be able to rent a better apartment.
1. Do you think that the housing market should be controlled by the government? If yes, in what extend? If no, why not?

The San Francisco case is not something that happen usually and it has well known reason. I dont think that housing market should be controlled by the government because why should it? The prices are high because a lot of people in that region earns a lot. It may sound cruel but if someone cant afford living in such a city maybe he should migrate to other city where he can afford that.

2. If your company gave you an opportunity to move to Silicon Valley, would you take it?

I dont know. I like my current situation which is living in Poland close to my family and friends and especially in times of covid i propably would stay because it wouldnt meet any new people there anyway and living there just for the fact isnt something interesting for me.

3. Is living in a box is too extreme for you? Would you do it if it meant you spending less on your rent?

Propably i shouldnt live in a box. It depends on what my job would be. If i would have a life oportunity to do something that i love maybe i would, but if i hardly made ends meet i wouldnt like to.
Leya Chechyk said…
1. I don’t see it as a normal functioning scheme. Nevertheless, I believe that there could be some laws which not directly control but create some borders of sense.

2.I wouldn’t, I would live in a less fancy place but in nice conditions somewhere in Europe with good climate

3. I would definitely not. I would probably find a way how to make more money than how to save them. Saving is not earning. If something seems expensive it simply means you don’t earn enough, there is no drama about that,

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