Can someone please explain the SF Bay Area housing shortage?

Miscellaneous and Personal Stuff I Must Share
1

I know housing prices are high because of high-tech jobs bringing people in.
Like that’s changed since Pong was invented!

But WHY aren’t landowners and builders creating a matching building boom?

Only 1/3 of people own their own homes here, so the rest must be investment properties.

Rents in S.F. are triple 3 years ago. Why aren’t all the one-story homes being expanded? Why are there still vacant lots and vacant storefronts everywhere? How big a deal is it to convert a storefront into a pricy “live-work loft” as the factoryshed-cum-penthouses are called.

There must be money for building materials, since they have not inflated much at all.

And it should be a shoo-in for loan approval.

So why aren’t builders and landowners cashing in?

2

What are you talking about? They’re putting up houses, condos and apartments hand over fist everywhere you look! They’re building as fast as humanly possible!

3

Becuase they CAN’T. In many cities they have a "green line’ that stops cities spreading. In others (eg-SF) it is so hard to get permits for any housing that there is actually LESS housing than 10 years ago (source- SF weekly). See, houses bring in very little tax money, but businesses bring in lots. So the cities want MORE Jobs, but less housing to put them in. The population is also growing far faster than housing is increasing.

4

Maybe because too many people want to live there?

5

Good answer ultress!