Tracking the San Francisco Tech Exodus
sfciti.org
sfciti.org
I know that outside of California, the world views "SF" and "the bay area" mostly as one and the same. Based on anecdotes I feel like this doesn't tell the full story, though maybe it does give you a high level overview (like this site does).
Among both personal friends and coworkers, ex-coworkers (from a decade+ of working in the bay area) -- surely there are people who move out of state (to Denver, Austin, Miami, etc.); but the more common trend is -- people who used to live in SF are moving out to the east bay / surrounding areas; and people who were already in the east bay before move even further away (Sacramento area, etc.). Another interesting bit -- Sacramento doesn't get talked about in tech circles and sites like this and related articles, because it's not supposed to be the "next sexy tech town", but in reality is a lot of people have moved here since the pandemic, both tech and not. I moved here before the pandemic, and witnessed the housing market rise more than the east bay (where there's already an influx of SF people moving to) this past year.
All I'm saying is there's a lot of nuances in this general exodus!
But they blend in wider Bay Area population stats because this is really about jobs that generate SF payroll tax which gives these employers a tacit say and leverage. Remember if you live in Oakland or Redwood City but are employed in San Francisco city/county, some of your payroll tax is being generated to benefit the city of San Francisco even if you are not a resident there.
That's why SF City is worried about SF based businesses and SF Bay Area workers.
(BTW this is also why cities such as Mountain View and Cupertino want to attract large business campuses like Google and Apple but don't want to build homes - they get more income from growing payroll tax but don't then have to spend more on schools, services etc for a growing population - they shift the burden onto other cities and counties that house those workers as they then have to generate tax revenue from other means)
SF doesn’t have local payroll tax, it has a local income tax that applies both to residents and to nonresidents on income earned in SF.
EDIT: Actually, this is wrong, too; despite a lot of sources indicating it. Sab Francisco had a 1.5% payroll expense tax, but voted to phase it out in 2012, and then (while it had declined to a much lower but nonzero number), voted to eliminated it last year, both times in favor of a gross receipts tax on business
This is false. There are some low-quality websites that have incorrect information about a nonexistent 1.50% SF income tax, if that's where you're getting your information.
San Francisco used to have a payroll tax up until last year, when Prop F replaced it with a gross receipts tax. [1]
Later, Square, founded by the same person as Twitter got pretty badly screwed by this very same tax [1], and it got worse when Prop C passed.
[0]: https://www.spur.org/news/2012-09-28/time-now-business-tax-r...
[1]: https://www.sfchronicle.com/business/article/Square-is-suing...
Sacramento also has a train line that takes you to Santa Clara, which is better than driving - this has made it a better choice for a few of the folks to consider that over Dublin or Pleasanton in the most recent migration (Amtrak is close to a lot of hardware-lab specific jobs like Nvidia, Lockheed, Marvell, GlobalFoundries and Arista), though that connectivity might shift if BART finally loops around to SJC.
Also Sacramento has good schools, decent federal funding pull (over say Tracy) and an airport with a few direct flights from Seattle or NYC.
The only downside pretty much is the weather in comparison and that too not by much.
Sports, bars, culture, muni metro, proximity to the ocean, proximity to nature (I can be alone in natural parks with less than 30 minutes of driving from my house in SF), jobs, dating, restaurants, I could go on.
I'm not even someone that plans on staying in SF (I actually don't like it that much), but there are lots of downsides if I left for Sacramento. I realize there are upsides as well, but I think it's disingenuous to say 'Sacramento is as good or better than San Francisco except for the weather'
Certain aspects change in priority drastically as one's life stage changes. Dating is one of those. As one goes from being single to married, dating goes from being just about the highest priority concern to the lowest. Similar for bars/night life. Once those things are out of the picture, I find Sacramento to be infinitely more enjoyable than SF.
There seems to be literally no end to the number of world-class coffee shops, breweries, brick oven pizza joints, sushi restaurants and parks out here.
After growing up in SF, living in the desert for a long time and desperately trying to make NY and LA work I can honestly say Sacramento is the healthiest feeling place Ive ever lived. And thats including the weather. Its a dry heat... :)
That said we moved here during COVID so still trying to figure out how to connect with tech folks out here of anyone has any thoughts?
Not true at all. The sad truth is there are more hiking trails and options for "stuff" involving nature than a far majority of folks realize. Even in areas like Los Altos, Palo Alto, Cupertino, etc, are dangerously close to non-urban reserves and other spaces, but often have no idea.
Many feel fine driving from Palo Alto to go to Marin for Alamere Falls and brunch in Mill Valley, but have no idea Butano or Purisima or Skeggs and brunch in Woodside or Pescadero or Davenport and is a fraction of the distance and comparatively stunning.
As for nature, well: obviously Sacramento ain't near the ocean. But it has two rivers running through it, a lot of parks (Sacramento has more trees per capita than any other major city in the United States -- seriously!), and you don't have to drive very far to get into the Sierra foothills. You'd be surprised at what you can find around there.
The qualifier below: obviously San Francisco is, for all of its warts, a "world class" city in ways that few other cities in the United States are. I like Midtown Sacramento more than any neighborhood I spent time in around SF, with the possible exception of Hayes Valley, but many neighborhoods in have great attractions and you can get to all of them via public transit. But unless "a half-dozen world class bars and four three Michelin-starred restaurants" is a make-or-break requirement, Sacramento is...honestly pretty nice. I really wish I'd been able to get things together to move there in 2019, because real estate prices started shooting up during the pandemic.
http://senseable.mit.edu/treepedia/
I had never heard of this site before. It is a fantastic presentation from MIT of an open source project for measuring Urban green space.
I live in the latter now, literally in SoFA (South First Arts district) and certainly before COVID it was a small but damn vibrant area.
Davis seems like a neat place, although real estate was surprisingly expensive the last time I checked. (Okay, sure, welcome to California.)
Yeah, SF definitely has a “lot” going for it. Glad I left.
"The plan calls for the construction of 6 Homeless Help Campuses. These would be built on Federal Land by the Army Corps of Engineers and would be funded by the Federal Government through grants to the hosting states. Targeted states are California, Washington, Colorado, Illinois, New Jersey and Georgia. Each campus will hold up to 50,000 residents. The campuses will include all services required by the residents including K-12 education, a trade tech college, physical and mental health care programs and will even include a local community based policing agency."
[1] https://www.sfchronicle.com/local/article/California-s-reope...
https://memory-alpha.fandom.com/wiki/Past_Tense,_Part_I_(epi...
(1) The "backlash" is not "coming," it's always been here. NIMBYs are not a new phenomenon and there will always be cranky people who respond to the plight of the homeless with "won't someone think of the property values." So it goes.
(1) More significantly: that is not remotely a serious organization. It's a few NIMBYs from LA who got sticks up their asses about a city council member proposing a homeless encampment near where they live. Come on, take a look around that web site: the "board of directors" have no bios or information, the "case studies" are nothing of the sort, there's no indication they've done any of the filings necessary to be a real non-profit. The site is, as near as I can tell, built using GoDaddy's free site builder (which is why it has the "Powered by GoDaddy" link in the footer: they're too cheap to pay a few bucks to turn it off), and it still has placeholder text like "Add a footnote if this applies to your business."
I mean, sure, even obvious cranks can get people to take them seriously -- but this is at best a group to keep an eye on. "The plan" you quoted is their pipe dream, not an actual plan any government agency has committed funds for.
SF is a whore you visit here and there but not often and certainly not one you make a meaningful part of your life - so-to-speak. Get the money and get out when you grow up some and want to take life more seriously than 40 year-olds hopelessly clinging to youth on the muni kickball field.
There are a number of factors that make the school system so outstanding:
1: The best schools are the public schools. There are some perfectly fine private schools, but the public schools (at least in SJUSD) are even better.
2: There are excellent magnet programs at the elementary, middle, and high school level. These programs do not exist in some other areas, including in Silicon Valley (this has come as an unwelcome surprise to my family). The schools in Sacramento regularly send their kids to national rounds of science competitions, and when I was a student (20 years ago) they regularly placed in the top 5 nationally.
3: Students from throughout the region can 'open-enroll' into magnet programs, regardless of geography. In my high school, we had students who came from 45 minutes away.
So the upshot is there are great schools that are free and that are available to any student (especially the advanced programs).
Gone very light on crime - super light. At some point folks just get tired of dealing / seeing consequence free crime right in front of them. I think families with kids being impacted there particularly.
Yes, one example that is not widely known of what happens when the Lions of the Left have the power to do what they really want is public middle school algebra in SF. ("The Lion of the Left" was the self-given nickname of one of SF's most-loved talk show hosts back in the 90s.)
SF grandees noticed that some races tended to take geometry (the class after algebra I) more than others. The number one goal of public education, they claimed, was to "close the achievement gap", so they eliminated geometry from middle school. If no one took it, no one who didn't take it would be behind, so no gap.
But then they noticed that some races still took algebra I more often than other races. So they eliminated that, too. [1] No one, no matter how well prepared, would be allowed to take algebra in any public middle school. The best students would be required to take the same classes as the worst, for great justice. Achievement gap closed.
Except that better students still had four years in high school to try to catch up to where they would have been if not held back, and not all races were equally likely to do this.
So, for more justice, all public schools in SF were required to keep their best math students in the same classes with the worst all the way from K-10. They are now only allowed to be different individuals the final two years of HS. Anyone who wants to take calculus in a SF high school now has to scramble to cram two years (algebra II/trig & pre-calc) into 11th grade to (poorly) prepare for calculus in 12th--until that miscarriage of justice can be eliminated, too.
Those who can afford it go to work at tech companies where they use various means to silence the "haters" who resist, while sending their own children to private schools that don't have these policies.
Many of those who can't afford it have been moving out of the city to suburbs that have begun the process (lots of districts have now eliminated middle school geometry and advanced placement classes) but are still lagging behind SF in implementing full justice. (Big Tech is working on it, but pockets of resistance remain.)
SF Chronicle, a big proponent of policies like this, describes it as positively as they can: [1] https://www.sfchronicle.com/education/article/SF-schools-mov...
Other parts of the standards (focus on group work, and on racial justice work in math) which may be designed in part to help reduce achievement gap do raise some questions around preparedness of some students that would result. This will only work if they get rid of standardized testing I think in later years (college admissions etc).
I worked in the tenderloin - so plenty of open air drug dealing (not a huge problem) as well as random attacks on people (a problem). My roommate was jumped and beaten near our place - very disruptive to his life in general.
I actually caught folks who had stolen my car, good response by police, got them in the car too driving it. I asked, if I pressed charges, what's the consequence. A few days in jail if I was lucky and wanted to spend years pursuing the case - these would be guys who I'd then have a beef with in my neighborhood.
I didn't carry a gun or knife and just didn't want to beef with the dudes hanging out. At some point you are like, is this worth it? As you get older, have kids - you just want to let you kid play. Where I am now the kids can play on their own with neighbors on the street - no worries. Much nicer in my view.
I'd move back again for work if I have to, but it would take a lot of $$$$ to convince me.
More shit than I've ever seen on any city streets. Every doorway, tree, and wall reeks of piss. It's no way to live.
Not saying that's ok, just that SF is hardly unique in that regard.
[1]https://en.wikipedia.org/wiki/List_of_United_States_cities_b...
I challenge that statement. Do you have any data support it? It is a myth repeated over and over by certain people and it’s never supported by data.
Violent crime in SF is near all time lows. That’s just the facts.[1]
My neighborhood I’ve lived in for 15 years has gotten so much safer and we are raising kids and loving it.
The crazy thing is the conservative tech activists who moved to Miami.. moved to a city with higher crime! Miami is higher crime than SF. So is Dallas (that was another profile in the local paper).
It’s insane that no one is challenging them on the facts. I think this is all because a bunch of progressive supervisors got elected who are critical of certain elements of the tech industry, and the tech guys don’t have a good response and so they are doing the usual conservative tough-on-crime political ploy to try to get rid of them.
[1] https://www.nbcbayarea.com/news/local/san-francisco/san-fran...
https://www.sfchronicle.com/local-politics/article/Out-of-co...
If you haven't been seeing this you haven't been watching. It's absolutely brazen - daylight robbery literally - and turns the store workers and folks shopping into cynics.
Chelsea (new DA) took office end of 2019 or early 2020. That really marked a major change.
"A violent year: Bay Area killings spiked 35% in 2020"
https://www.sfchronicle.com/crime/article/A-violent-year-Bay...
You probably don't realize how much crime is simply unreported - it's a massive amount. Go to any car glass shop - they will tell you how "crime free" SF is.
Note that I grew up in an actual low crime city. That means I never had a house key, we never locked the house. We left the keys in our cars. This isn't out in the middle of no where, this was a city (with very low crime).
You say your children can walk to neighbors freely like children can in east bay? You are the exception in SF.
I realized that folks in the city are just so used to crime, to the steps you have to take to avoid it, they don't realize the impact it has on their quality of life. You really don't get to know your neighbors that well (relative to a totally safe neighborhood where everyone is more welcoming). This last bit is anecdotal, but neighbors really look out for each other outside SF. Folks do the block email lists, get togethers.
I did a quick comparison to Lafayette in east bay.
San Francisco 2019 Murders (which was a low) - 4.5 murders per 100K. Lafayette - 0.0 per 100K. Robberies SF - 344 per 100K. Lafayette 11 per 100K. Lafayette had 3 robberies in the entire year. The differences are likely larger as in SF there are so many robberies per day that a fair number just don't get reported, especially in some parts of town where cops are not liked - folks are not calling it all in.
Your only SF specific crime stat is about property crime (shoplifting). Consistent with what I wrote.
Your second stat on murders is regional, not specific to SF, which overall remains near all time lows in violent crime. You then blame the regional Bay Area rise on SF’s district attorney which makes no sense.
This is all consistent with what I’m saying: the “safety” claims are not supported by data. Some folks in the tech community just keep saying it over and over within a specific sphere but I’m calling B.S. SF is safer than it’s been for most of our lives.
Why? OP's numbers are per capita.
My family and I moved from SF to Lafayette precisely for these reasons: we were subject to assaults and intimidation from strangers in the street in SF (police refused to follow up), our car and garage were broken into once a year on average (police did not report back for any of the 7 police reports we filed), the total losses exceeded $5000. Others have it worse; our doctor had her house burned down by a mentally ill arsonist.
In addition, we were not looking forward to raising our kids in the SF public school system and we don't have enough money to pay for private school, so we moved out. In Lafayette, I can let my kids walk to school without worrying about them getting mugged. (By the way, aside from the neighborhood, you may experience public safety very differently depending on your height, weight, sex, and race. The stats won't tell you any of that, nor the amount of under-reporting going on due to the loss of public trust in the police/DA to do their job.)
We know many other families who followed similar trajectories.
I have no disagreement with you in your general point or personal preference for small exclusive bedroom communities where poor people cannot afford to live, but the same could be said in comparison for Miami, Austin, Dallas or any other major city.
[1]: https://en.wikipedia.org/wiki/List_of_United_States_cities_b... (sort by property crime)
Chicago has massively higher violent crime rate than SF. By your own citation.
> It is clear that even within the Bay Area SF is disproportionately bad
You claim with no data.
This is what I mean — the facts just don’t support the “SF has gotten less safe” argument.
Yes, but there have been plenty of nonanecdotal studies, and the surge in Bay Area (and broader urban coastal California) outmigration around the pandemic has been overwhelmingly to inland California, particularly (in the Bay Area case) the Sacramento region. (California had a preexisting net domestic outmigration, too, but that’s separate from the more recent “San Francisco tech exodus”, which is specifically part of the pandemic urban outmigration.)
Unfortunately for my finances (being a Sacramento-area homeowner that isn’t going to sell right now), that’ll reverse when the reasons people valued the coastal urban centers are restored with full economic reopening.
Not even remotely. Within a compact area, the three major poles (SF, Oakland/Berkeley nd San Jose) have different histories, and narrative threads that lead to different spaces between. Even by age, you'll see widely divergent attitudes about what constitutes "home" (SF is the most insular and aloof in general, and not always in a derogatory way), San Jose the most maligned (sometimes legitimately, sometimes very much not) and Oakland (until recently) treated as a crucial but often 'a part, yet apart' microcosm unto itself, with Berkeley its neighboring city-state. People in different stages of life have often moved around and between the three, for varying reasons.
Many who are from here and certainly many who have moved TO here, move "around" the area more than truly exodus out.
So many of our "professional" friends have converged on Sacramento. Lawyers, doctors, accountants, and also tech people. We have a very strong pull towards the area, as a result. Previously, all of these different people and couples were spread all over California and/or the country. They've all moved there in the last 1-5 years and are establishing roots through families, etc... My wife and I intend to join them in the next 1-3 years, relocating from Orange county.
As someone who grew up in Sac, don’t do it guys! It might be a quick drive but it’s a different California.
It was only when I left the area as an adult that people told me they thought it was weird that people referred to it as "Sac" (and "East Sac", "West Sac", etc.). Apparently for the uninitiated, this reminds people (at least young men) of a body part.
Emily Badger had an article in the NYT recently showing exactly this. People are moving from the core to the "suburbs".
I moved here because I felt like I didn't have a choice if I wanted to build or be part of successful startups, now I feel like living here is hindering that process. You can live anywhere and get cheaper talent across the country, pay less taxes, and have almost the same upsides.
I've also never worked at a company that didn't have that clause.
When listing projects and ideas last time I got the waiver even while keeping the ideas extremely vague and broadly encompassing. Having said that it isn’t required to even disclose persay.
There aren’t a lot of cases of employers going after an employee unless you directly rip them off or rip off even a part of their valid IP you create. Though if you plan to take VC money at any point they’ll want to see that waiver even if it’s unrelated. If it’s open source there is substantially more leeway.
I’ll let the commenters argue the pedantry. As for OP that’s a very conservative bootlicky answer, every employer has standard boilerplate language against it, you cant filter it out but you can negotiate it away. It’s not an issue usually it’s just some lawyer covering his bases.
Edit: and as a side note California is special in the sense that our economy and brain power is massive. The courts know this and are very worker friendly in this regard. If the lawyers and employers had their way with their insanely restrictive contracts it would severely stifle competition and economic growth/health
SF has peaked? What do you mean, like the price of a crypto coin or a stock?
Your comment suggests that you first moved to SF sometime in the past eighteen months expecting to discover a get rich quick scheme and now consider yourself an expert on the place. It's possible you're merely <30 and lack context. Perhaps all the aforementioned hypotheses are true.
"Longtime" SF/BA residents have observed an influx of treasure seekers arriving with schemes to earn fortunes since the mid 2000s. If you ask a majority of those longtime residents they would likely tell you that certain things "peaked" in 1998.
You could also go back to the 1970s and 80s when Apple was in its infancy, or when HP was founded in 1939. Residents living then might've given you a different "peak." Of course you could go all the way back to the 1800s and I'd wager that a majority of indigenous peoples felt SF peaked prior to the arrival of Europeans. You can find people who still believe that now if you're curious enough.
The point is that making a comment like yours is unproductive because cities/regions are constantly evolving. Again, probably the majority of longtime residents are hoping SF and the BA will "peak" when the people who moved to the region looking for a quick buck move elsewhere.
Sorry to be confrontational, but when you attack a region or city then you better not miss. If you're always focused on looking for negatives in a place, person, or idea then you'll always be able to identify something to criticize.
As an Artist and an Engineer who used to live in SF and moved south recently, I'd argue most of the folks I interacted with in this oft-cried-over demographic were more aptly described as aspiring artists, and that their net contributions to the 'culture' were mimetic and surface-level at best. If you take away the weed, bob marley shirts, and hemp shopping bags, what exactly can we say they did?
None of this is to say the 'nerds' were contributing much to the culture themselves, but I don't think there's much of an argument against them other than that they're boring, rich, and talked about Apps. These same people brought in quickly consumed tax revenue which the city has gorged into in its gluttonous waste.
The root of the problem is the mistrust of the 'Other,' the 'Outsider' as new folks (often Nerds) immigrate to the city, which IS a net benefit to the blending of cultures and ideas. The fixation of preserving the crumbling vestige of the past is what prevents the service level workers from ever regaining a foothold, and the scapegoat is the Nerds, when it should be the landlords and Old Guard.
Many of today’s looser sexual mores got their start or took root in San Francisco, particularly around lgbtq issues.
Sure, 90% of everything is crap, including San Francisco culture, but that last ten percent is a very big deal and the only reason it seems less so today is because it is so pervasive. Whereas it wasn’t before SF and environs produced it.
Will this happen? Who knows, but SF has generations of influence behind it.
> Between 2010 and 2018, San Francisco produced only one new unit of housing for every 8.5 new jobs.
ps -- "securing [sic] political favors for the tech industry"... that's loaded language to refer to industry lobbying.
And sf has received an enormous amount of money for the tech industry; I think it will have a really rough time if / as the industry starts locating elsewhere.
The city's consolidation into tech forced out a lot of the vibrancy that made San Francisco unique. Those people are still residents. It's just they've been unable to afford the space to enact some of the things they used to.
These are also the people making SF expensive. It's not just artists, it's their own children who can't live there, one reason SF has fewer families with children than any other city IIRC.
As for quirky businesses, that's DRs and licensing.
https://sf.eater.com/2021/4/22/22397615/matcha-n-more-ice-cr...
I'm not too familiar with the startup scene before 2010. But from what I know, it was mostly established in its current form before the Dot Com boom.
It seems like HP, Cisco, Intel, Apple, Oracle, Sun, Adobe, Intuit, & Yahoo! where part of one movement.
eBay, PayPal, Google, Facebook & Netflix obviously added to that.
But now all the newer companies are coming from SF - SalesForce, Twitter, Uber, Lyft, AirBNB, Yelp, Splunk, Dropbox, Square, Instagram (originally), Slack, StichFix, Postmates, Instacart, GitHub, Robinhood, Coinbase, etc.
The only recent, pretty big startups in the South Bay I can think of are LinkedIn and Quora. YouTube - from San Bruno - is kind of in the middle. The rest are subsidiaries.
I mean, the OG companies like Apple and Google and Facebook are so big that they dwarf the rest of the startups in the Bay by themselves. So in a sense, the Silicon Valley still feels like the Peninsula. But the startup scene definitely seems to have shifted.
History time. It's kind of amusing to see these companies referred to as OG, when there were many generations of Silicon Valley startups before them. The real OG was probably Hewlett-Packard, founded in Palo Alto in 1939. Another key company was Shockley Semiconductor, founded in Mountain View in 1956. Eight key employees left Shockley in 1957 and formed Fairchild Semiconductor, gaining the name the "Traitorous Eight". Fairchild led to over 126 startups, sometimes called the Fairchildren, including AMD, Altera, LSI Logic, National Semiconductor, and SanDisk.
Two of the Traitorous Eight, Gordon Moore and Robert Noyce, left Fairchild in 1968, founding Intel in Mountain View. Later key Silicon Valley companies were Oracle (1977), Sun Microsystems (1982), and Cisco (1984). Although Apple started in 1976, it wasn't a dominant company until years later. Google (1998) and Facebook (2004) are relative newcomers.
Information on Fairchild's influence: https://computerhistory.org/blog/fairchild-and-the-fairchild...
Question - when did the VC model really come into play? Were the Fairchildren like AMD VC funded?
A lot of others have mentioned that space plays a role in this a lot. Companies needed fabricators and data centers, which took up space, so it was too expensive to be in the city.
Is this really all there was to it? Back in these times - there was White Flight from the cities, right? Did most people (even college grads) prefer to work in the suburbs then? Was this even a factor at all?
Personally, I think it was more of a conservative East Coast mentality vs. an anything is possible West Coast Mentality.
Stephen Levy's Hackers is probably a good start (but skip the Stallman The Last Hacker part).
This is a very basic fact of the history of SV that many in the VC scene are reluctant to acknowledge.
I saw that in one Google search and it seems incredibly unlikely. This seems much more probable (even if you assign some of the engineering degrees to CS):
Also your list of South Bay startups is pretty incomplete - there's also WhatsApp (Mountain View), Box (Redwood City), Coursera (Mountain View), Khan Academy (Mountain View), Tesla (Palo Alto, with manufacturing in Fremont), the Signal Foundation (Mountain View), RobinHood (headquarters is Menlo Park, not SF), Zoom (San Jose), GoFundMe (Redwood City), Carbon3D (Redwood City), WealthFront (Palo Alto), Impossible Foods (Redwood City), Roblox (San Mateo), and GoPro (San Mateo). I do agree that the center of gravity of the valley moved northwards in the 2010s though. Prior to then, it was debatable whether SF was even really part of the valley, while since then it's been a major tech hotspot.
Long answer could be a phd thesis but “people needed lots of space until they didnt” kind of suffices.
The earliest SV companies wanted to be physically located near Stanford and Moffett for the govt subsidies/contracts. Still happens (read The Entrepreneurial State) but physical location is not as important in the internet age.
Frankly I would not give this Sf.citi lobbyist piece much credence. “Migration” could simply be a temporary effect of the pandemic. We may very well see young people come rushing back into SF for the same reasons as before.
And crime? You wouldn’t know it from HN threads but SF violent crime is again at all time lows.[1]
[1] https://www.macrotrends.net/cities/us/ca/san-francisco/crime...
Here's a list of startups in Palo Alto: https://angel.co/location/palo-alto
Here's a list of startups in Menlo Park: https://angel.co/location/menlo-park
I'm sure if you have crunchbase pro you'd be able to do more analysis. But Silicon Valley is still pumping out a lot of startups, and high-tech firms.
When I graduated from grad school in the mid-80s, I don't think a single one of my classmates who got a job in Massachusetts lived in the city proper.
https://www.motherjones.com/environment/2016/02/lead-exposur...
Younger people then moved back in (causing superficial gentrification) because they couldn't live in the actual richer areas because those had all blocked new housing (actual gentrification.)
You're overlooking the qualitative motives for (somewhat incorrect) purely financial aspects. Younger people continued to move to denser parts of cities for at least a solid decade after in-city rents surpassed suburban ones. A large demographic group got married and started having kids much later than previous ones (this part traces pretty well back to economic factors, though!) so was looking for very different things in housing. As those factors started to change, they started following similar suburbanization patterns, and WFH accelerated that dramatically.
"Friends" is probably the clearest pop culture recording of this, showing the draw of living in the city for single 20-somethings in the 90s, and then the eventual appeal of the burbs for the later married w/ kids stage. Even in the 90s part of it, none of them were there because NYC was the cheap option.
But NYC has always had a singular appeal. And there was long a certain snobbery(?) about living in Manhattan specifically.
Young people tend to be economic migrants and the pockets of mass economic growth start in cities. They're also single and relatively poor so they live in multi-tennant housing near the downtowns where they work. As they get older, richer and more numerous (i.e. married w/ kids) they move out of the core. Cycle repeats with rising prices if growth is still there, or you hollow out the city and only the poorest remain. SF could stay like it is, or become a west-coast steel town, but it's unlikely to return to what it once was.
It's varies over time. With SV-style tech that hasn't been the case until quite recently. And, in the Bay Area, arguably the nexus of jobs is still in the South Bay. And this sort of situation is true for many other areas as well.
https://freakonomics.com/podcast/abortion/
https://freakonomics.com/2005/05/15/abortion-and-crime-who-s...
Continues to happen too. The parts of the world with the most terrorism like Iraq/Yemen also most recently had leaded gas.
That doesn't seem to actually be the case, but crime statistics is a notoriously tricky area.
There of course is also an effect where people think all of Portland is on fire because they saw a protest on TV once. But also Portland has had twice as much gun violence this year than all of 2020, which seems like a problem someone should do something about.
The Mother Jones article referenced above is arguing that the most effective thing that can be done to combat crime is lead abatement, I think that argument has taken a fatal hit. Some cities are in fact seeing homicide rates close to or even above the 1990s rates, that happened suddenly and it happened after leaded gasoline had been banned for 45 years.
You can't explain the massive increase in homicide in large cities in 2020 using environmental factors like lead, the cause has to be cultural or political.
But yes, before that it was limited to a few hotspots like St Louis which still had environmental lead problems. Meanwhile DC in 1990 was more dangerous than the Iraq War.
Depending upon how you characterize tech, there's still a lot in the northern and western suburbs, especially if you include the defense contractors. But, yes, there's now a lot in Cambridge and the Seaport, especially, as well as all the biotech/pharma in and near Kendall Square.
Protip: Anti-housing activists will never tell you their real motivations: https://belonging.berkeley.edu/sites/default/files/blacks_ch...
People should be mad, but not at 22-year-olds coming from around the country looking for work. They should be mad at the millionaire rentiers who tell those kids when they show up that it's illegal for anybody to build them housing.
Anti gentrification policies almost always end up displacing the populations they are meant to protect. You don't want new apartments in a specific area because it may bring in newer crowds? Well guess what, those crowds will come any way, and now they can out price the people who live there.
Rent control is another problem, because long time residents won't move. And with no new inventory, the prices for pretty much any apartment that enters the market goes sky high. It's not the tech workers who displace the locals, they are anyway hunting for apartments in a different price range from the locals. It's the locals now just budgeting higher portions of their income towards rent and displacing other locals. This is exactly what happened in Berlin. [3]
And last but not the least, I think despite the nostalgia and how we remember SF differently from what it is now, yes there were quirky businesses all around. But there were only specific parts of the city that had them and quite frankly a lot of them just used to be replaced by newer businesses every couple of years. But what happened at some point was too much bureaucracy, red tape and politics crept into the cost of starting a business that now you have to sink almost a quarter of a million dollars before you can even start an ice cream shop. [4] It was partly the "locals" who created these problems.
[1] https://journal.firsttuesday.us/california-homeowners-are-st... [2] https://www.bizjournals.com/sanfrancisco/news/2018/08/21/san... [3] https://www.bloomberg.com/opinion/articles/2021-03-02/berlin... [4] https://www.sfchronicle.com/local/heatherknight/article/S-F-...
What should he have done differently that would have made the process work? Is it perhaps possible that his plans might have worked had he presented them with kindness, centered his words in compassion, and experienced a genuine blooming of human empathy? Greeted Calle 14 and Arguello with sympathy and real emotional engagement, acknowledging the legitimacy and validity of their concerns and pain, before refusing to donate?
Or was he a jerk because he didn't want to play ball with an unwritten shadow system that exists to make arbitrary and extrajudicial demands, and no amount of framing or emotional performance was going to make him into less of one? Can you help me understand?
By the way I never saw a “tantrum” from him; he followed the law methodically and for that he was ridiculed by the press as a deviant (“kamikaze” according to Joe Eskanazi https://missionlocal.org/2018/06/the-strange-and-terrible-sa...). He publicly shared his research (e.g. https://groups.google.com/g/sfbarentersfed/c/mHT2l4zDyKg/m/X...) and I think would have wanted his project to be an example to others of how to make the rule of law the norm in San Francisco, but that was not the agenda of the politicians and the press.
I get that people (such as Supervisor Hillary Ronen, gatekeeper Erick Arguello, and so-called “Progressive” journalist Tim Redmond) are upset about people profiting off the housing shortage. But if they are upset about a landowner making ~$130k per unit for investing in alleviating the shortage, they should be livid over every single homeowner in the neighborhood who sells a house for $2 million and makes more profit per unit without increasing the housing supply at all. That they asymmetrically target housing producers while remaining silent to idle speculators gives a perverse disincentive against creating housing and reveals a NIMBY preference by these so-called “Progressives”. In the end I think their advocacy does more harm than good in San Francisco even when it is in the name of capturing some value for the poor.
But the jerks succeed some of the time.
New York is possible for artists because of public transit.
Artists don't live in Manhattan, they live in the outskirts, or once were the "outskirts", and commute to where is needed because the MTA works (for the most part).
The Bay Area's transit system is a mess (too many different agencies with inconvenient transfers between lines) so affordable, yet accessible neighborhoods beyond Oakland/San Leandro/Richmond are nil.
SF would need to gut its entire permitting system. Today, it can't even make small and incremental improvements: https://www.sfchronicle.com/local/heatherknight/article/Is-p...
Correction: in 2020, Proposition 19 (which limited Proposition 13/58 property tax breaks for parent-child transfers to only farms and owner-occupied “family homes”) did pass 51%-49%, whereas Proposition 15 (which would have eliminated Proposition 13 tax breaks for commercial property) was on the ballot but failed 48%-52%.
My point was that O($10m) isn't even enough to reliably land something on the ballot, much less get whatever crazy thing you want passed.
This of course being distinct from undoing Prop 13.
Everyone loves the idea of cheaper housing for people in theory.
Once they realize it means their own property value won't appreciate as quickly, or may even decrease and then suddenly they are against it. And they will vote out any officials that support it.
There needs to be state or federal intervention. And that doesn't seem likely at any time in the near future.
Our problem is never that we don't have enough wealth, it's always that it's concentrated among a small percentage of the population, and a much larger percentage gets starved out entirely.
> New York billionaires have always found a way to support artistic endeavors. Case in point - Bloomberg, he personally donated a lot.
If we have to depend on the charity of billionaires, we've already lost the war.
Right?
May as well keep your money and let those fend for themselves.
Much better art created when people do it for the passion.. on their own time.. with their own resources.. after they've worked an 8 hour day.
Whingers are going to complain anyway - no point in affording them the time and resources to do it more.
"SF residents move to Oakland and Berkeley" isn't a very exciting headline though
Paris or Seoul might be good goal posts for SF and the Bay Area; even outer-borough NYC is still more dense. Without arguing the merits of preservationism one way or another, SF could "look" the same and be a lot more dense if:
1) Garages are converted to apartments. Easiest and cheapest for the housing itself, but requires much better transit
2) The Sunset is raised up to not be shorter than the older parts of the city. Yes, that's a big change, but I think people are less sentimental about the little ticky tacky boxes than Victorians.
I find it vary interesting how old apartments like https://en.wikipedia.org/wiki/Consulate-General_of_Russia_in... amid a see of single family homes point to how before post-war suburbanization everything was set to densify with a look and feel like the tenderloin (the buildings themselves, when they were new, don't hate). Even the 60s modernist towers on e.g. Russian hill, for all their excessive parking and other issues, are bigger.
The thing to remember is NYC wasn't so different than the rest of the country pre-war. Rather it was farther ahead on the same trends, and when the trends abruptly reversed it was left was a critical mass of good transit to sustain "real urbanism" through stagnation and bad policy, while other cities weren't. Only after all that did such a stark dichotomy emerge.
Downtown Oakland is like downtown SF - I wouldn't go there for nightlife either. I'd go there for shopping.
EDIT: The blocks around 9th and Washington is pretty lively. It's like a giant party from 6pm onwards.
My guess is that this shift occurred in unison from the shift away from hardware startups (requiring deep-pocketed investors) to the current game of funding hundreds of small software/web startups and hoping one of them makes it big enough to pay for the losses of all the others.
Note I'm not saying the good old days were better or worse, just different.
https://www.sfgate.com/expensive-san-francisco/article/peter...
It would be quite silly (and clever) for VC LPs to start buying up residential properties, knowing that their funding rounds go right into payroll and then right into SFBA rents and back into their pockets. :D
Intellectually you know that being located in the Bay Area is a major burden to the ramen-eating startup founders that you fund. But it's a lot easier to rationalize that away with justifications around "cross-pollination of ideas" and being in the "intangible benefits of being an innovation center". Certainly a lot easier when you're not worried about making rent on your 400 square foot studio.
- "It's a right of passage"
- "They'll look back on the struggle and smile"
- "It'll be worth it since the sacrifice will lead to success"
Even then it was tenths of a percent.
Are sure “exodus” is the right word?
I don’t want to make this political it’s always been the same story ever since I was a kid. 1 - People who want to live here but priced out hoping to come at a “reasonable” price. 2 - Conservatives looking at the massive amount of talent, money, influence, power, and an intellectual power house of the world and finding any reason to possibly hate cause… we’ll I don’t know.
It’s fine. Nowhere is without issue, yes it’s gotten more expensive, but so has everyone salary. Dirty little secret to the outsiders, a lot of places are matching or competing with FAANG salaries, and even with cost of living being so high you make more in the BA then you would otherwise even after factoring out the roof over your head, in more then a few jobs by quite a healthy margin too
Additionally, other sources indicate that most SF residents who left moved to nearby areas [1]. (Those areas themselves may see their residents moving elsewhere)
[1]: https://www.kron4.com/news/bay-area/exodus-study-reveals-dra...
They say 63 percent of tech companies surveyed have already downsized or plan to downsize their office space in the San Francisco Bay Area. This is to be expected in a work-from-home situation like the ongoing pandemic. I don't see anything about the percentage of it being permanent rather than temporary.
Particularly if you don't think it will last long, I can see a bunch of companies taking a wait-and-see approach.
Mother of god...
Here's the contrarian part: I think that early-stage startups might benefit as well. After the dot com boom, the only people applying to startups were the die-hards. To some extent, you also noticed a better signal to noise ratio right after the housing crisis. I have no doubt that fewer startups will be started now in SF, and that fewer local people will apply for jobs. But it was never about the quantity and instead always about finding the needle in the haystack. I think there's a chance that the size of the haystack will shrink much more quickly than the number of needles.
If really so many companies are going remote, then all the commercial landlords would have to find ways to make money out of their commercial space.
Any reasons that could prevent it (e.g. stringent zoning code, preventing conversion from commercial to residential) ?
Some obstacles are the basic requirements of housing (kitchen, bathroom, windows) don't really match office space. You need lots of water/waste/electric/hvac pipes distributed across a space for residential, not the same for commercial where they can be more centralized in the floor. The space distribution is also not the same - eg. "deep" buildings are worse for residential because the ideal window frontage to room depth ratios don't match - you can have a desk or communal space very far from the window in commercial real estate and its usable, but you can't really put residential rooms far from a window because no one wants a windowless room and laws usually prevent it.
Additionally, I've seen office windows that don't open but you usually need (by law) to allow opening windows for residential use (for ventilation purposes I think). This can be a VERY expensive fix. Most people also want windows that open too.
On the other hand, the way these are often overcome is with huge "loft-style" apartments - very high ceiling and large spaces. The bigger window height helps with the depth issues. The big spaces are then catered to rich people, who fund the massive Reno bills. (note: historically, lofts existed because artists could bypass zoning laws to live in warehouses they used as a studio, then it became trendy)
The question for this sort of thing isn't how expensive it is absolutely but weather or not it's more expensive than building more housing in the area, and I doubt it's more expensive than that.
> The big spaces are then catered to rich people, who fund the massive Reno bills.
Ye Olde "luxury apartments are expensive" argument. If supply actually met demand then it would look more like the east coast where younger people with low salaries can afford these sorts of apartments with no roommates.
> but weather or not it's more expensive than building more housing in the area
that's for the market to decide. This area has very expensive office space, and you'd have to factor in the loss in revenue in office rent. of course, in a world where the offices stayed vacant, that's 0 anyways.
> look more like the east coast I lived on the east coast, the parts that people want to live often aren't cheap either (NYC, Bos, etc). They're also not increasing housing by much.
> Ye Olde "luxury apartments are expensive" argument
This wasn't an argument against, its more a "where does this money come from" point. Expensive things are expensive to produce. Thankfully they're expensive so they can cover construction expenses. SF needs more new luxury housing so people with lots of money stop living in existing housing, leaving room for poorer people. No one would build market rate housing when there are millionaires living in rundown walkups.
The best way to ensure fair and equitable housing is to constrain the supply as much as possible.
We don’t need to worry though, the zoning and planning departments will definitely SF from the tyranny of new housing units.
If you worked at FAANG a decade ago, someone might say said this.
If you worked at FAANG in 2019, someone might say this.
Its now 2021 and you just said this.
Sure the windfall might not be what they were years ago for any one example company, but that "priced for growth" isn't a single event - people will still see some windfall since growth will probably still happen.
However crime and overall cleanliness are bad even though the cities must be rich with cash and this is coming from someone who used to live in a "third world" country (even though the term original usage wasn't about wealth).
So some meaningful changes in policy need to happen.
I’m looking for new space in SF, moving from a current lease near Union Square to something bigger.
Why wouldn't you stay?
I think NYC and Austin are booming right now. While nyc is a world class city, the 'progressives' have taken over the NY State legislation, and personally it is worrying.
While some of the legislation might be long overdue, and good, there are many parts of the 'progressive' movement that is just nihilistic, and destructive in the long run and it might end up goin the route of SF. So, this year will be the wait and see year on how NY will move forward. If it goes the way of SF (with destructive policies) it might not look good.
But, NYC-ers are more rational, and both of the leading candidates for Mayor seem to be more in the centrist, or center left camp, and the far left / super progressive ones are not doing well.
Btw, the reason progressives didn't take over before is that Cuomo was actually conspiring to make his own party the minority in the legislature, because he thought if he was forced to ever actually do anything it'd hurt a future presidential run.
That's no different in SF
I love Oakland, but I'm gone as soon as our rent is up. There's a general lawlessness here that's incredibly frustrating.
But I mean, it is a city. These things happen in cities, I just don't see how it could credibly be claimed to be worse than San Francisco when the geographical variability is so high.
Anything I saw in Oakland was no worse than any other city I have ever lived in. I don't really know a better way to put it, I'm not saying it's perfect, I'm saying it's as fine as anywhere else of comparable density.
The neighborhoods in SF as most people think of them are larger than the areas that many suburb residents tend to think of as defining their neighborhoods.
Wow -- when I was there in the "dot-com boom" of the late '90s and early '00s, such a vacancy rate was unheard of (it was 0.5% for housing, and similar for commercial real estate).
Oh well, they've earned this outcome.
"Totally false" — Internet rando
Aka a company with a vested interest in convincing you that the $75 price they are offering you is totally in line with the average and it's really good and you should just take it.
I.e giving months away for free or other incentives like that? Anecdotally I’ve heard office rent is way down as well.
This is because their loan-to-value ratio is based on their square foot rental rates. If the unit sits empty they, of course, lose money ... but if they rent it at market price they could lose the property entirely with a (for lack of a better term) margin call.
If the value of the building ratchets down and blows up their loan covenants, it is better to have it sit empty and lose money slowly ...
The landlord loses out on rent payments (albeit at a lower monthly rate).
The lending institution loses because the default rate increases if landlords stop collecting rent.
Renters also lose due to artificially inflated prices.
What's stopping the landlord and lender from re-negotiating loan covenants to enable the landlord to collect lower rent payments for a period of time without triggering a new valuation?
(From the article: 16 Million square feet of vacant office space, and a quick Google search gave me a homeless population of 8000)
What's lacking in San Francisco is the political will to do anything meaningful about homelessness (or crime, or the housing crisis, or infrastructure, or the schools or anything other than vague virtue signaling)
"San Francisco is paying $16.1 million to shelter homeless people in 262 tents placed in empty lots around the city where they also get services and food — a steep price tag that amounts to more than $61,000 per tent per year."
https://www.sfchronicle.com/local/article/S-F-pays-61-000-a-...
e.g. not paying rent/bills when they physically have the money to do so, gambling addict so getting into massive amounts of debt, getting evicted due to antisocial behaviour/vandalism of property.
Living in an actual building rather than a tent in a parking lot ("protected" or otherwise) seems like a great first step and healing some of those mental health issues.
When the treatment starts working to a degree that the formerly-homeless person can be trusted with the cash, give it to them, along with the rent bills.
[1] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1448345/
[2] https://ajph.aphapublications.org/doi/abs/10.2105/AJPH.82.10...
In other news, the sky is blue, and water is wet.