While theUS Census tells usthat the number of people making more than $200,000 annually became the largest income bracket in San Francisco in 2015, it still only accounts for 20 percent of the population.
Of course, you can rent for about half of what CAR estimates is the monthly cost of a standard SF mortgage ($6,310).
But probably not that many people are making $125,000/year either—the Census says the city’s median income is just over $92,000. (Although admittedly the mean is much higher: $134,000.)
“As the rising cost of living in the area chips away at wage advantages, net migration is expected to dramatically decline over the next few years,” writes the Beacon team.
Which would mean hiring would become a problem for certain companies. Of course, job numbers are never as simple as just one variable. The tech sector has been dogged with tepid news about IPOs and lack of capital all year, for example.
Still, Beacon has always held that housing is the heaviest drag on job numbers, even during good times.
“It’s safe to say that it’s the biggest detriment,” Beacon spokesperson Victoria Bond told Curbed SF. “There are other factors, but we’ve always contended that housing is the single largest threat to economic growth.”
That’s just one firm’s prediction. But Sacramento’s Legislative Analysts Officesaid much the samein 2015, warning that “high housing costs [prevent] the state’s economy from meeting its full potential.”
And it seems to make sense. Consider that San Francisco’s labor force increased 27,200 people over 12 months. Notice that this is more than twice the projected increase in our residential population.
We can’t say for sure that all of the remaining 15,000 workers or so would prefer living in the city to wherever they are instead. Or that another 27,000 somewhere wouldn’t move here if they could.
But we could lay fair odds on it.
Author:Marilyn Cortez Phone: 956-587-1633 Dated: December 7th 2016 Views: 311 About Marilyn: Always ahead of the highly competitive RGV real estate market, Marilyn Cortez is a Spanish speaking ...
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Always ahead of the highly competitive RGV real estate market, Marilyn Cortez is a Spanish speaking native of the Rio Grande Valley. Born and raised in Mission, Marilyn is committed to her clients, and is recognized as a Top Agent in the Greater McAllen Real Estate area, and within Keller Williams Realty. Since the start of her Real Estate career in 2007, she has sold over 40 million dollars of real estate. Known by her fellow real estate agents to be hardworking, honest, dedicated and motivated, Marilyn is knowledgeable in all areas of Real Estate and has built her business on results, with more than 70% of her clients being repeat clients.