Why So Many Musicians Are Leaving San Francisco for L.A.
pitchfork.com
pitchfork.com
It's not inevitable; rather, it's because of a series of political choices. Steel and elevators are very old technologies and as such it's quite simple to increase the supply of dwellings on a given quantity of land. San Francisco's development rules mostly prohibit anyone from doing so, however, per Matt Yglesias's book The Rent Is Too Damn High (And What To Do About It) (see http://www.amazon.com/dp/B0078XGJXO?ie=UTF8&tag=thstsst-20&l...).
In the face of constant supply and rising demand prices increases. Want to change that dynamic? Increase supply by building new stuff.
I've been present at some significant housing supply buildouts in a few areas, and each time, my observation was that the price of new housing was somewhat above market rates... since it's brand new (and often "luxury" condos/apartments). Plus building costs for new stuff is financed in unamortized $RECENT_YEAR dollars rather than amortized $DECADES_PAST dollars.
For land-constrained places like San Francisco, where the only way to increase supply is up, this dynamic is probably more true, since however old the tech is, it's a lot more capital intensive than stick framing.
Where I have observed a decrease in price, it's never been because of supply increase. It's places like Detroit where demand drops, either because of economic stagnation/collapse, or where there's health/property hazards.
This isn't to say they shouldn't build out/up in SF, just that I'm pretty sure that introducing rents musicians can afford is not going be as simple as changing development rules and letting private developers go at it.
[1] http://www.bloomberg.com/news/2013-04-23/washington-faces-ap...
"Job growth in the region, which is heavily focused on the government, has been too weak to support the construction, said Greg Leisch, chief executive officer of Delta Associates. Federal contracting has declined by $7 billion in the last two years and the spending cuts known as sequestration have limited employment and demand for rentals, he said.
“The supply would have been consistent with Washington’s job performance had the federal government not shrunk,”
In other words, despite the increased supply, had the fundamentals of the local economic activity stayed the same, they would have only matched demand at best, and prices probably would have stayed stable/increasing.
It looks to me like this at least as much another example of a price reduction from a demand drop as it is a price reduction from increased supply, if not more.
Some of it was money related, but most musicians I know live in Oakland anyway. Ty is so busy he's not really home that often anyways. I do think a garage is probably a step up. I know they couldn't play loud in their apartment in the inner richmond.
I guess all those people I follow on Tumblr aren't real artists :-(
EDIT for clarification - I don't think it's a cultural desert: I think the article says this
Los Angeles proper; downtown and the surrounding areas, have a great climate because of the onshore breeze that comes in through Santa Monica. The indigenous foliage (what's left of it) there and up into the foothills is quite varied, and with everything the inhabitants have planted over the years, can be quite dense in some areas (largely supported by water from elsewhere in the state).
The extended areas as well, Angeles National Forest and the San Gabriel Mountains, can be comparable in density and recreation to forests across the nation.
He'll learn soon enough that it's the desert where 90% of America's culture comes from. It's hard to understand without living there.
los angeles obviously isn't a cultural desert. it's the 2nd largest city in the US, the largest city in the most populous state, and the metro area is absolutely massive. if it's art, food, language, or entertainment that exists in the world, there's a high probability you can find it in LA. people just think they know the city from driving through it on a freeway 2 or 3 times, or going to one part of the city once.
there's also a lot of immature hatred in a lot of bay area people for LA because LA is bigger than SF and takes up a lot of global popular mindshare that they feel should be directed toward the bay.
also, by putting something down, people feel more sophisticated/superior to something they feel maybe doesn't deserve the attention it's getting. basic human psychology.
http://blogs.sfweekly.com/shookdown/2014/01/here_is_what_the...
http://www.amazon.com/The-Rent-Too-Damn-High-ebook/dp/B0078X...
San Francisco has long been filling up with noobs...but now we face the most dangerous, the most egregious and blandest of them all...people with lots of money.
NOBODY can square-up a joint like rich people.
Or to decrease demand, but that seems unlikely to happen in SF in the near term.
edit: I couldn't figure out why I was a little confused reading this, but it's because there is no one coherent answer in this article.
edit: I asked because the article doesn't answer that, aside from a small sampling. And the phase before this seems to be from only a couple of years ago ("Aaron Leitko wrote a 2011 Pitchfork feature about it called 'Positive Destruction'.") I don't know SF, but I've seen gentrification up close a few times in larger US cities, it usually takes longer. Hence my question.