The Symbiotic Affect of a Hot Job Market in SF and Rising Home Prices
The ecology of San Francisco includes more than its Golden Gate Park and small park flora, and trees along streets and rooftop and inner courtyard gardens. It includes a less helpful symbiotic relationship between the city’s job growth and the cost of buying a home here. We are pumping out the job opportunities, with 19,100 added between April 2017 and April 2018. These were professional and business services, information services and financial activities industries—as identified by Beacon Economics.
However on the converse side of the ecology, home prices (because all those new professional job people are competing) have jumped 21 percent in the same period. That’s a very large increase, and it’s easy to see there is at least a prima facie correlation between the number of jobs added (19 K) and the 21 percent rise in home costs.
The median home price in San Francisco is now $1.54 million, and as we reported recently it requires a salary of over $333,000 a year to land a house now in SF. And those making $117,000 a year are now considered to be low income in the city.