The Explosion Rent in San Francisco

Paper Type: 
Pages:  3
Wordcount:  600 Words
Date:  2021-03-10

Living in the big cities has become difficult. This is because finding a place to stay and affording rent has become a hard nut to crack for the majority of those wishing or is already living in the cities. Rents are not only high in San Francisco but are quickly rising. The city has been an exceptionally costly city, and it is the most expensive when it comes to real estate in the entire USA. The sad news is that the city administrators have no ideas on how to curb the situation. One the city's major problem is that far more people want to migrate to the city than it can accommodate. For this reason, the median price for a single bedroom house was $2,195 in 2011 and two years later the cost increased by 27% to $2,795 at the same time, the price for a two bedroom house rose proportionally. It is true that the San Francisco real estate market is on the move (National Review Online).

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The real estate market in the city has increased significantly and in case a newcomer moves into the city and is looking for an apartment; he need to set his mind that the rental prices have exploded, and those small houses now sell for more than the Detroit skyscrapers. The city has beautiful scenery with a bustling economy, but the supply of the housing sector is relatively fixed since some large swathes of the whole town have not been zoned for the current high-density housing that has the probability of accommodating the high demand. In this case, the price must increase.

When the real estate market has a high demand, everything else increases, and the cost of living increases as people yearn to earn more in order to maintain their living standards. During this period, people are forced to live in their cars because they really cannot afford to live and rent an apartment in the Bay Area. To make matters worse, one land or a single house in Palo Alto, built more than hundred years ago and just over 1.000 square feet size, is offered for sale at more than $1 million. Thats just bite of the pie because anyone planning live in a spiffier spot must be prepared to pony some big chunk of cash. One bedroom house in Russian Hill cost up to $3,500(Paragon-re.com).

While the housing demand has increased, the supply of housing units in San Francisco is fixed hence the rise in prices. Most people have questioned why the prices are not coming down but instead increasing. For other people, it is because of the increase of college institutions in the city. Other supervisors said that one of the concept solutions to solve the problem would be to support the citywide expansion. But once the local government gives permits and finances to the developers, there will be an increase in housing units which will reduce demand and hence reduce the prices.

The demand for housing has increased, and the supply is fixed hence the increase in demand. Anyone lucky to acquire a rent-controlled housing unit in the city should stay put to tighten further the supply of apartments available. And anybody thinking of moving to the city should be prepared to dig dipper in their pockets. Otherwise, it will be hard for them to survive.

Work Cited

National Review, "The Simple Solution to High Rent in the Bay Area, Thomas Sowell, February 21st, 2016http://www.nationalreview.com/article/424720/affordable-housing-bay-area-rentParagon-re.com, "2015 San Francisco Real Estate Market Review | Paragon Real Estate". N.p., 2016. Web. 3 Mar. 2016

http://www.paragon-re.com/_2015_San_Francisco_Real_Estate_Market_Review

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The Explosion Rent in San Francisco. (2021, Mar 10). Retrieved from https://proessays.net/essays/the-explosion-rent-in-san-francisco

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