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Old 08-11-2019, 02:08 PM
SamuelA is offline
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Join Date: Feb 2017
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Quote:
Originally Posted by Bone View Post
I doubt this is true. Bay area rent control has opponents on both sides, some thinking it's too little, and others not enough. Most new housing legislation has failed in the state legislature, and while new rent control is still possible, it's facing stiff opposition. Certainly lots of folk are in favor of it, but the support is not universal.
All the rent control does is slow down the rate which the free market can operate. This might actually be a good thing, in real life control systems it prevents oscillations. But it doesn't solve the fundamental problem.

Each tech company benefits from that location, or they would put their offices anywhere else that is cheaper and offers similar city amenities. But the hyper-specialists who are maximally skilled are all there, and the financiers who provide all the funding for startups are most available there.

So either prices rise until no one can live there who isn't a specialized tech worker, or they rise until even the poorer tech companies have to move. Both of which has probably already happened. All the service workers are going to either have to live in very crowded conditions, on the streets in an RV, or commute in. Which is already true also.

This can be "fixed" - you could relax all the restrictions and make the place look like Hong Kong. Or another competing tech hub (Austin, maybe?) might instead grow to look like Hong Kong instead and silicon valley would lose it's status.