Report: Biotech affects rent increases, displacement

“We’ve seen a ton of industrial space transform into life science. This has supercharged rents, and it's also created much higher-paying jobs than were typical of industrial businesses, and there is a mismatch,” said Tony Rozzi, deputy director of Economic and Community Development, during a meeting Nov. 12. “Those jobs being created aren't necessarily always connecting or going to residents. A lot of them go to non-resident commuters.”

The phenomenon is certainly not unique to South City, as many jurisdictions grapple with the tradeoffs arising from the presence of lucrative industries in their communities, whether it’s life science or technology. After all, the sector has brought much economic vitality to the city. For instance, impact fees from development help pay for myriad public services, ranging from child care to parks and key infrastructure needs. But the conundrum is particularly acute in San Mateo County, which has one of the highest median household incomes in the country. 

“Almost all of the new jobs are going to commuters, and in a lot of the jobs where our local workforce is well represented, that square footage is dwindling or being redeveloped,” Rozzi said. 

While increasing the supply of new housing is often touted as the ideal antidote to high rents, city leaders aren’t seeing that as the only solution to combat displacement. After all, Rozzi added there are ample housing units in the city, just not enough for lower- to moderate-income households.  

“A lot of the housing that has been built actually exceeds demand because it’s market rate, and it is more expensive,” he said. 

In 2024, the city started organizing an anti-displacement committee to identify potential local policies and programs to improve the situation. Over the last few years, the city has implemented an emergency rental assistance program, an ordinance that requires affordable housing developments to prioritize those who live or work in South City, as well as stronger tenant protections for those living in single room occupancy units. 

Still, the City Council supported moving ahead on additional policies and initiatives, such as dedicating its available city-owned sites to affordable housing development and rental inspection programs to proactively maintenance and safety issues in older buildings. Councilmembers also want to pursue a teacher housing project in partnership with the South San Francisco Unified School District, though some expressed frustration over the district’s slow progress on redeveloping some of its property, particularly around Serra Vista and Foxridge elementary schools.

“They still don't have a timeline on what they’re going to do,” Councilmember Mark Nagales said. “We have a teacher shortage, and we have to build more affordable housing … I’m tired of the excuses. I want to see them step up and build housing for our community.” 

The South San Francisco Unified School District did not provide comment in time for publication. 

The city also supported expanding legal education for renters and landlords, as well as its Launch Local program, which offers below-market-rate rents for new brick-and-mortar businesses in city-owned buildings.