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Re:SF’s Housing Crisis Explained by kijin on Tuesday April 15, 2014 @01:52AM (#7590475)
Just pack up and leave the damn place already.

Sorry to be blunt, but that's how "supply and demand" is really supposed to work. If Seattle supplies the same quality of housing for half the cost of San Francisco, buyers/renters should flock to Seattle, thereby reducing demand in SF and eventually causing SF housing prices to come down until the market finds an equilibrium. Trying to lobby for "below-market-price" housing is always going to be a losing game; the only long-term solution is to make the market price lower.

Unfortunately, competition among cities to attract residents is not like competition in other industries. A lot of people are stuck in a relatively small geographical area their whole lives due to employment, their children's education, various kinds of emotional attachment, and the sheer difficulty of uprooting themselves from a familiar neighborhood. This creates a captive market, severely limiting the effectiveness of inter-city competition. And of course, whenever there's a captive market, there's somebody who profits from it. In the case of SF's housing market, entrenched neighborhood groups and "below-market-price" renters enjoy benefits at the expense of newcomers to the city. Perhaps they actually deserve those benefits. Still, it's unfair to everyone else.

But there's one group of people who can afford not to be bound by the usual excuses that keep people stuck in a captive market. That's us, the techies. We don't need to be in any particular city in order to write code. Most of us are young and don't have kids. Few of us have any "root" in the Bay Area, so we couldn't care less about being uprooted [1]. There is no reason for us to be a part of San Fran's captive housing market. We can pack up and leave, all 8% of us if possible. That would be "supply and demand" doing its work.

Of course, there are a few problems with this proposal, including the fact that there really is such a thing as social networking of the offline kind. The Bay Area undoubtedly has one of the best tech "scenes" in the world. But I see it as a problem that needs to be fixed, not merely an advantage that we're free to exploit. HN, for example, requires everyone to move to the Bay Area, perhaps for a good reason. But in doing so, they directly contribute to, and exacerbate, the hideous distortion of the Bay Area's housing market. It's like mandating that everyone meet at a particular Starbucks. It makes sense when everyone you want to meet is already a regular of that Starbucks, but when the manager of Starbucks begins to take advantage of its captive clientele, you should seriously start considering an alternative.

Remember, the only vote that the market respects is a vote with your feet, i.e. a realistic threat to do business with a competitor.

[1] Disclaimer: I've lived in at least seven different cities in three continents, and harbor no particular emotional attachment to any of them. Apparently I'm incapable of developing an emotional attachment to geographical coordinates. But I must confess that I kinda like it that way.

Re:SF’s Housing Crisis Explained by ggreer on Tuesday April 15, 2014 @02:42AM (#7590621)
I agree with much of what you've said. I've lived in the bay area for 7 years, and SF for 3. I like a lot of the people here. I like a lot of the companies here. I like the weather. But if I had no obligations, I would move tomorrow. I've lived in a half-dozen states and two countries. The state and local governments here are the second-worst I've lived under.[1] SF is unbelievable. There are insane violent vagrants roaming around Market street and the Tenderloin. MUNI is a nightmare, and BART is noisy enough to cause hearing damage.[2] Almost any public area is extremely dirty. One can't walk more than a block without encountering the smell of waste.

The biggest thing preventing tech workers from moving is that some interactions simply must be done in-person. Often this requirement is due to culture, not technological limitations. Still, there are significant advantages to in-person interactions. People are much more likely to pay attention to each other. There can be interesting and beneficial chance encounters. And of course, the likelihood of anything getting recorded or leaked is lower.

I think that as remote work becomes more feasible (both technologically and culturally), more tech workers will move out of the bay area. There are simply too many incentives to leave.

1. The worst being Guam, which couldn't keep electricity running for more than 12 hours a day. Great beaches, though.

2. Oh, and who had the bright idea to put cloth seats on BART? That person has probably caused the spread of more disease than Typhoid Mary.

Re:SF’s Housing Crisis Explained by kijin on Tuesday April 15, 2014 @03:06AM (#7590685)
Speaking of trains, the west coast really needs high-speed railways.

After all, teleconferencing all the time is not the only alternative to everyone living in the same city. People could actually travel for important meetings from time to time.

A best-of-the-class high-speed train (300mph+, not the pathetic 200mph version they're talking about) should be able to get you from Portland to SF, or from LA to SF, in two hours flat. Even better, you'll be able to work during those two hours.

Re:SF’s Housing Crisis Explained by vacri on Tuesday April 15, 2014 @04:55AM (#7590934)
I was surprised to find out (in 2009, may have since changed) that there wasn't a daily train between SF (and surrounds, pop 8M) and LA (and surrounds, pop 20M). I had to get a bus to Bakersfield before I could hop on a train.
Re:SF’s Housing Crisis Explained by leapinglemur55 on Tuesday April 15, 2014 @05:41AM (#7591032)
That's mostly a problem with the terrain geography in the area (trains can't easily cross the grapevine without a tunnel underneath it or a much longer travel time).
Re:SF’s Housing Crisis Explained by selectodude on Tuesday April 15, 2014 @12:20PM (#7592696)
You can take the train directly to Oakland, but not San Francisco.
Re:SF’s Housing Crisis Explained by vacri on Wednesday April 16, 2014 @12:23AM (#7596107)
My Bakersfield train ended up in Oakland, and I had to get the bus over the bridge to finish the journey. There didn't appear to be a train direct from LA to the same location. Again, this was a few years ago, so things may have changed. Or it may have been seasonal.
Re:SF’s Housing Crisis Explained by zanny on Tuesday April 15, 2014 @09:08AM (#7591564)
I wonder what would happen if the tech industry giants pooled their resources to build a metropolis elsewhere, wherever they could found a county and just go to town without restrictions on building height or whatever.

And then they could uproot their workforces (and if you took the combined employees of Yahoo, MS, Google, Apple, AOL, Facebook, etc, you would have moved the employee base) and move there, it would probably be the most futuristic city on the planet.

I mean, they wouldn't - or they already would have - because it isn't economically feasible. But that always comes off as a buzz kill since we just end up trying to grow new businesses like cancer into the ancient ruins of lost revolutions we call "historical preservation".

Re:SF’s Housing Crisis Explained by BadassFractal on Tuesday April 15, 2014 @04:05PM (#7593972)
Yeah, there's nothing more appealing than creating a nation of geeky males in their 20s. You know what dating down in MV is like? Well, that'd be way worse.
Re:SF’s Housing Crisis Explained by veemjeem on Tuesday April 15, 2014 @02:10AM (#7590524)
Unfortunately the tech sector is fairly well paid so we are the least likely to move since we will gain the least from a move, whereas middle-income wage earners will gain the most from a move since they'll be able to afford rental units that won't cost them 90% of their monthly wages. The middle-wage earners are significantly less mobile since their profession is likely to be deeply rooted in their current location. They are feeling much more of the pain than people in the tech sector.

Most of us in the tech sector are young and single and least likely to go house hunting, so the expensive housing is painful for us, but probably affects us the least.

Re:SF’s Housing Crisis Explained by epistasis on Tuesday April 15, 2014 @01:56AM (#7590486)
The reason to live in SF is to take part in its vibrant culture. That's why people live there and take the busses to the boring parts of the peninsula.

There is high demand for what the city offers.

There's also high demand for face-to-face meetings with people to assess and establish trust. There is no replacement for that, and why experience tends to cluster together, whether tech here, or entertainment in the South.

Re:SF’s Housing Crisis Explained by cromwellian on Tuesday April 15, 2014 @02:36AM (#7590598)
I live in Santa Clara, but I still get to access the city's culture on weekends -- music, theater, cuisine, et al. Many techies don't even get off their shuttles until 7pm or more, so I wonder how many actually partake in the local culture on weekdays, and how many eat and then sleep.

I suppose if you're in your 20s and without children, it makes a bigger difference, but I find I don't often have the time to do anything until the weekend anyway, and so there would be little use paying high rents when 60% of the time, I'm just crashing there and spending all my time elsewhere.

Re:SF’s Housing Crisis Explained by orky56 on Tuesday April 15, 2014 @12:28PM (#7592745)
The Caltrain stops at midnight though. Make sure you don't have too much fun and stay out late or else you'll miss your transportation back. Driving is too unsafe and gets tiring as well due to distance and parking. Somehow, the majority of residents in the bay area are okay with this the status quo.
Re:SF’s Housing Crisis Explained by Apocryphon on Tuesday April 15, 2014 @01:25PM (#7593063)
We're not okay with it. We just have to put up with it because the entire system is ridiculous. Seems like ridesharing services are one of the ways we've attempted to deal with it. I can envision in the future private weekend shuttles that ferry partygoers from S.F. to other places, so people don't have to deal with the terrible parking situation in the city, and the fact that BART and Caltrain stop far too early.
Re:SF’s Housing Crisis Explained by anigbrowl on Tuesday April 15, 2014 @02:56AM (#7590647)
Vibrant culture requires a critical mass of arty types, though - people who are highly sensitive to rental prices and uninterested in commuting. SF is a lot more epensive now than it was when I moved there in the mid-90s; back then you could throw a cosy little rave party for $500 or rent a small apartment for $1000/month.
Re:SF’s Housing Crisis Explained by kijin on Tuesday April 15, 2014 @02:06AM (#7590518)
Actually I agree with everything you said.

Where I disagree is that I think of those things as having two faces. On the one hand, a vibrant culture and a large group of trustworthy colleagues increase people's quality of life. On the other hand, they reduce mobility, distort markets, and therefore reduce people's quality of life.

And the hacker in me wonders whether it might be possible to reduce the negative side while keeping most of the positive side.

Re:SF’s Housing Crisis Explained by maxlybbert on Tuesday April 15, 2014 @02:05AM (#7590514)
That is true, and it explains why demand is higher than it would otherwise be. Since California generally tries to restrict supply through zoning laws, it's no surprise that prices are increasing. The Bay Area does more to restrict supply than the rest of California.
Re:SF’s Housing Crisis Explained by visarga on Tuesday April 15, 2014 @09:25AM (#7591633)
Not all tech workers need to establish trust. For every entrepreneur, there are a dozen programmers who just work 9 to 5. They could do that remotely.
Re:SF’s Housing Crisis Explained by cgh on Tuesday April 15, 2014 @02:58PM (#7593661)
Yes, that's me. I work for a SV company but you'd have to pay me a LOT more for me to actually move and live down there. Remote work should certainly be a part of the solution to this SF housing crisis.
Re:SF’s Housing Crisis Explained by wwweston on Tuesday April 15, 2014 @03:42AM (#7590770)
> I've lived in at least seven different cities in three continents, and harbor no particular emotional attachment to any of them.

That does help explain why you see locations as essentially fungible. :)

> Apparently I'm incapable of developing an emotional attachment to geographical coordinates.

There's coordinates, and there's community. Places become keys for personal/shared experiences and history, people build up neighbors and networks that provide society, help mitigate risk, and introduce opportunity (and the fewer resources you have, the more important that is).

> We don't need to be in any particular city in order to write code.

Certainly not to write code. To raise money, on the other hand, it seems to be pretty advantageous. Whether that's about dev convenience or VC convenience, though, is probably a key question worth exploring.

The larger point about making other choices than the Bay Area is one I'm very on board with. There are times I wish I lived there and opportunities that have tempted me, but it's also clear to me that SF and the Bay at large have some structural problems and don't have good policy for protecting/fostering the stuff that's important about communities. For the most part, I've chosen to move in other orbits and it's been rewarding.

Re:SF’s Housing Crisis Explained by forrestthewoods on Tuesday April 15, 2014 @02:58AM (#7590655)
Nooooo! Stay out of Seattle! We don't want anymore Californians up here. You've already ruined one state, don't bring your pain and suffering to us.
Re:SF’s Housing Crisis Explained by techsupporter on Tuesday April 15, 2014 @05:12AM (#7590982)
You realize that's not going to work, right? Besides, California isn't a lifeless chunk of rock with no economy and roving bands of killer robots. It's "ruined" in the sense that it's trendy to hate on Californians, Texans, New Yorkers, and anyone from "not here."

Who knows, maybe the ex-Californians will vote yes on Prop 1 so we can keep our buses.

Re:SF’s Housing Crisis Explained by Apocryphon on Tuesday April 15, 2014 @01:27PM (#7593072)
I didn't know that Texans were on the move. I thought that there was an influx of Californian/New Yorker exiles moving to Texas and the rest of the southwest.
Re:SF’s Housing Crisis Explained by kevingadd on Tuesday April 15, 2014 @07:36AM (#7591280)
Yeah, I'll just pack myself up, pack up all my family, including people who are sick or disabled, then pack up my career and my employer and shuttle 'em off to some low-cost area so I don't have to pay SF's absurdly inflated real estate prices. Sounds great and ENTIRELY realistic.
Re:SF’s Housing Crisis Explained by mwfunk on Tuesday April 15, 2014 @02:29PM (#7593475)
Well, aside from the strawman about somehow convincing your employer to move as well, then that IS more realistic that paying SF's absurdly inflated real estate prices, yeah. The alternative is for you to use the power of the government to prevent all the people who want to move into your neighborhood from doing so, is that fair and realistic? Some people think so, but I disagree. That's just telling one group of people that they can't do something in order to prop up the lifestyle of another group of people.
Re:SF’s Housing Crisis Explained by kevingadd on Wednesday April 16, 2014 @07:22AM (#7597093)
You have the freedom to choose someplace affordable before you move there. Telling someone who's already been living in SF, with roots dug in, maybe owns some property or has a long-term job there to just up and move is incredibly selfish. Moving is incredibly expensive.

The problem is not the new people moving in and the solution is not to stop them, the solution is to address the pressure those new residents create that is driving the old residents out. Entire families shouldn't be uprooted and have their lives thrown into disorder just because some twenty-something wants to live in SF for a year or two while they're working at a startup, and that twenty-something shouldn't have to practically evict some low-income family to find an apartment.

Re:SF’s Housing Crisis Explained by mmorett on Thursday April 17, 2014 @01:00AM (#7602063)
It's called supply and demand. It's called life. Things change. The world doesn't revolve around families that "shouldn't be uprooted and have their lives thrown into disorder".

If those families wanted to be able to stay there permanently at a fixed rate of housing expenses, they should have purchased the property. Can't afford to buy? Then deal with the risks of renting.

Their desire for low rent that keeps them comfy and entails no inconveniences has no validity. That's just a wish. That's immature. This is not grade school and not everyone gets a trophy for simply showing up.

Re:SF’s Housing Crisis Explained by pnathan on Tuesday April 15, 2014 @11:09AM (#7592211)
Seattle rents are also going up quite a lot, and there's also quite a furor about rents here.

There's a LOT of upper-end housing supply due to come in soon - tens of thousands of units. Amazon is taking a lot of heat about it, since they chose to build in the city and their workers usually do as well.

Re:SF’s Housing Crisis Explained by frozenport on Tuesday April 15, 2014 @02:24AM (#7590564)
The difficulty in development makes it not supply-and-demand. If it were pure capitalism SF would be filled with skyscrapers and the much beloved homeless people would be sent back to Detroit.