The Terrifying Cost of Tech's Modern Gold Rush
Amid a tech industry gold rush, San Franciscans are facing terrifyingly high housing costs. In a new video, The Economist highlights why this is so and what it means for the city.
Why should those of us who don’t live in the Bay Area care? For one thing, that area’s housing market is simply a more extreme version of most dense urban areas in America: high demand for real estate, low supply of the same, and therefore increasing costs to businesses and residents alike.
Housing and commercial space are constrained by a web of permitting and zoning laws meant to protect incumbent residents. And they work—too well.
The result is that America’s most productive cities, especially San Francisco, are choking their long-term growth and denying millions the opportunity to live affordably.