Housing prices, SF edition
Eric Fischer set out to look at rental price trends in San Francisco. The standard dataset goes back only to 1979, which was also the start of rent control. Most people would have stopped there. But no:
I set out to replicate the DataBook’s methodology over a wider range of years, … Mostly I used the San Francisco Public Library’s page scans of the newspaper but resorted to microfilm for the few later years where no page scans are available.
That is, he copied down and entered the prices from the ads by hand.
There has been a remarkable constant trend in SF rental prices since the mid-1950s, with median real prices increasing steadily by 2.5%/year, decade after decade.
For the years since 1975, when employment data are available, most of the deviations from this trend can be explained by increases or decreases in numbers of homes in the city, increases or decreases in number of jobs, and increases or decreases in total real salaries and wages paid (specifically salaries and wages, not all income).
Rent control didn’t have a big impact. Speculation didn’t have a big impact — prices were higher during the boom of the 1990s, but only as much as would be expected from more people in the city and the higher salaries and wages they were paid.
San Francisco County already has a population density of over 7000 people per square km — lower than the Auckland CBD, but higher than anywhere else in Auckland. It’s hard for them to increase supply enough to reduce prices, but they might manage to increase supply enough to stabilise prices.
(via Michael Andersen and @BarbsNZgarden)

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