The Bay Area is notoriously expensive and experts weighed in on a report that confirms four of the cities in the county are in the top 10 most expensive places to rent with South San Francisco taking the top spot.
The average one-bedroom rental unit in South City skyrocketed to $2,880, nearly 40% more than it was in 2021, which marked the city as the fourth most expensive place to rent in January’s Zumper report. However, Burlingame, Redwood City and San Mateo were ranked 5, 6 and 9 respectively.
Zumper spokesperson Crystal Chen said San Francisco rents are the most expensive in the Bay Area and it makes sense for many residents who work in it to get more space for less by moving to a nearby city.
“The demand is higher in those less expensive suburban areas because many renters priced out of San Francisco may have turned to South San Francisco for housing since it’s very close to the city but still more affordable,” said Chen.
Coldwell Banker real estate agent Rachel Ni believes the demand to live in the biotech hub, which originates in South City, may only be exacerbated by the growing number of jobs it has produced over recent years.
“In all areas, a lot of companies are doing layoffs but the ones doing the hiring are pharmaceutical and mostly all the big pharma is in South City,” Ni said.
Redwood City is in the middle of the Peninsula. There is a greater demand to live there, especially in Redwood Shores, she added.
“It’s close to Silicon Valley and not too far from San Francisco, the mid-Peninsula is desirable when you factor in its top-tier schools,” Ni said.
Additionally, South City is centrally located to San Francisco International Airport and has fewer issues with crime, cleanliness and homelessness than San Francisco, which could make it more desirable for residents looking to leave, she added.
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South San Francisco Councilmember James Coleman reacted to the Zumper report saying it is a really shocking statistic because South City is a really reasonable place to live.
If he could guess, the biggest reason is there are a lot of jobs coming into the city and demand is high.
The city has been proactive toward building more housing with Measure AA passing during the November election, which authorizes the city to acquire, develop or construct low-rent housing, up to 1% of the total number of existing units, annually for eight years. The city will be able to use its $120 million in special housing funds from commercial linkage fees to build 1% of the total number of existing housing units in the city.
Additionally, the city’s 2040 General Plan aggressively addresses the need for more housing to be included just east of Highway 101, with the industrial neighborhood of Lindenville and El Camino Real also seen as places for new homes. The plan helps alleviate the city’s Regional Housing Needs Allocation, a state law dictating how much housing Bay Area cities will need to build in eight-year increments; the city will need to permit 3,956 units of affordable housing between 2023 and 2031. The units are required to be divided among three categories, with rents offered at or below $1,713, $2,741 and $3,426 for a one-bedroom unit.
That equates to approximately 250 units per year, totaling around 2,000 units in the next eight years. The measure would override Article 34, a 70-year-old state law that states additional affordable housing units can only be built with public funds if passed through a voter initiative.
“The City Council is dedicated to keeping our renters in their homes and protecting against displacement. As well as protecting and preserving affordable housing,” Coleman said. “We need to find that balance of folks who want to live near their job but also protect the families who have been here for years against displacement.”
You can think of housing like musical chairs. The number of players is determined by the jobs in the area. Who gets the chairs is based on how much money each one can spend.
If you keep adding jobs, without adding housing to match _somewhere_, then you get the situation we have, where lots of people working six-figure jobs are living with roommates in grungy old apartments, and people working lower-paid jobs are squeezed into substandard living situations, or forced to commute three hours.
SSF is doing better than a lot of other cities in terms of adding housing, but now they're adding more high-paid biotech jobs at an even faster clip. :-/
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You can think of housing like musical chairs. The number of players is determined by the jobs in the area. Who gets the chairs is based on how much money each one can spend.
If you keep adding jobs, without adding housing to match _somewhere_, then you get the situation we have, where lots of people working six-figure jobs are living with roommates in grungy old apartments, and people working lower-paid jobs are squeezed into substandard living situations, or forced to commute three hours.
SSF is doing better than a lot of other cities in terms of adding housing, but now they're adding more high-paid biotech jobs at an even faster clip. :-/
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Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
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