San Francisco Public Press (https://www.sfpublicpress.org/series/special-report-the-cost-of-living-here/)
In the drive to build a robust technology-driven local economy, San Francisco has attracted droves of high-income earners, giving it a larger share of wealthy residents than any other U.S. city. That is making living here increasingly unaffordable for everyone else. Studies suggest that more than 10 percent of residents who would be middle class anywhere else should be considered poor here.
Consumer Prices Outpace Efforts to Aid City’s Pinched Middle Class
Housing accounts for about half the growth in what consumers across the Bay Area spent over the last 15 years, and there is ample evidence showing that the housing crunch is most acute within city limits.
San Francisco leaders are tackling the affordability crisis, but existing and emerging policies just prune the edges of the problem.
The city has made costly investments, including Healthy San Francisco, perhaps the nation’s most comprehensive municipal health-care safety net. It also plans to offer low- and moderate-income residents subsidies beyond the Affordable Care Act.
San Franciscans enjoy cheaper transportation overall, since car ownership is optional. But a $2.25 one-way Muni fare is no bargain for low-income residents if slow service limits job and shopping opportunities.
The city and state offer help to reduce the price of Internet service (including a plan for free citywide Wi-Fi); low-cost child care; and nutrition assistance on top of food stamps.
But many policies, including cost-of-living adjustments for wages, welfare guarantees and low-cost housing, are based on national or regionwide inflation statistics that do not reflect the city’s economic reality.
San Franciscans not sheltered by rent control, subsidized housing or other protections are at risk of losing their homes. To increase the housing supply, in October of 2015 the city announced a plan to house 500 schoolteachers by 2020. The mayor’s ambitious $310 million bond issue that voters passed this fall promises to build 775 units.
Yet the need is often pegged in tens of thousands of affordable apartments, so these modest efforts are unlikely to affect housing prices anytime soon.
ABOUT THIS REPORTING PROJECT
Local and state governments, among other institutions, rely on economic indicators that are often outdated, and use average prices from across the Bay Area — glossing over the distinct spike in the cost of housing in the city. In our research, we found that city leaders are struggling to formulate policies to rescue longtime residents from the effects of surging costs, which are reflected in price increases across a wide array of goods and services.
REPORTING: Angela Woodall, Tatiana Dzekon, Caroline Cakebread, Sophie Murguia, Peter Snarr, Dayvon Dunaway | EDITING: Laura Impellizzeri, Michael Winter, Michael Stoll | DATA GRAPHICS: Amanda Hickman, Tom Guffey, Eric Lawson | PHOTO: Dayvon Dunaway, Tearsa Joy Hammock, Peter Snarr, Stella Sadikin | ILLUSTRATION & DESIGN: Anna Vignet | ONLINE: John Angelico, Eric Lawson, Meka Boyle | SPECIAL THANKS: Todd Johnson, Bureau of Labor Statistics
THIS PROJECT WAS MADE POSSIBLE BY DONATIONS FROM PUBLIC PRESS MEMBERS, AND BY A CHALLENGE GRANT FROM THE SAN FRANCISCO FOUNDATION.
Sophie Murguia, ReporterLacking transportation options or flexibility to reach jobs, shopping and other necessities, lower-income riders often trade comfort, promptness and even safety for affordability.
Peter Snarr, ReporterInternet access is increasingly taken for granted — for finding a job, attending all levels of school, managing a business, entertainment and communication. But 100,000 San Francisco residents cannot afford a home connection.
Caroline Cakebread, ReporterTwo different stores that target two distinct populations with different priorities: One serves the area’s longtime Latino residents; the other caters to those who can afford premium prices for freshness and the cachet of buying from local vendors.
Tanya Dzekon, ReporterThe income cutoff to qualify for subsidies is based on the 2005 state median income, while the average cost of putting a San Francisco preschooler in care full time has almost doubled since then.
Angela Woodall, Reporter San Francisco is offering a new, subsidized plan and expanding Healthy San Francisco for city residents who need — but cannot afford — health insurance.
Amanda Hickman, Editor and 
Michael Stoll, Executive directorIn the Bay Area, spending on housing has grown at twice the national rate. This graphic explains what’s grown how fast in the last four years.
Angela Woodall, Reporter We list some examples of how the city has tried to soften the blow of rising prices, and policies that advocates for low-income people say San Francisco could adopt.
Angela Woodall, Reporter In 1999, during the last tech startup boom, about one-third of San Francisco households were putting more than half their pay toward rent or a mortgage. That’s nothing compared with now.
Mark Hedin and 
Geoff Link, Special ContributorMid-Market stores are worlds apart, a sign of rapid change.
Meka Boyle, ReporterLive discussion on the cost of living: Everyone in San Francisco knows the cost of living has skyrocketed. What they might not realize is that consumer prices — led by escalating housing costs — are leaving many low- and middle-income families struggling to stay in the city while remaining above the poverty level.
