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It is well known that San Francisco’s housing prices are consistently higher than those of other cities across the United States. There are many reasons for this phenomenon. Many well-known technology companies and high-tech talent converge here. However, people with low-income can’t afford the high rental rates.
Let’s first take a brief look at the current state of San Francisco rentals. We have to admit that the overall rental prices in San Francisco have dropped this year because of the pandemic. According to the statistics, the price of studio has dropped from $2,596 last year to $1,895, down 27%, and the price of one-bedroom has also dropped to $2,600, down 25% compared to last year.
The above is the current situation of rental prices in San Francisco. Due to the impact of the pandemic, many companies are working from home. Many people are starting to move out of the Bay Area to cheaper places to live. However, are these rental prices acceptable for people who cannot move further away?
I think it is not. For someone making $15 an hour, rent at $1,895 takes up 78% of his salary. The rest of the money is also not enough to support his other expenses for a month. Even though the price of renting in San Francisco has decreased significantly compared to last year, it is still unaffordable for people earning lower income.
This also shows the need for truly affordable housing, not housing for which people spend more than half their income. We expect the rent for an affordable home to be nore more than $780 per month per household earning $15 an hour. This rate is extremely below the current rent rates in San Francisco.
Currently, our country is facing one of the worst affordable housing crises in its history. Without a doubt, those living in poverty are the most severely impacted.