If anybody can afford to live in San Francisco, it's the people who can scrape together enough for a condo, right? We mean, that's the life right there—no landlords, no throwing money away every month without building equity, and no worries about the Ellis Act.
Except that nobody can afford a condo here either. It's enough to make you want to fill in the Bay and build towers where there used to be sailboats.
In fact, condo prices are now above their 2007 peak, which they reached just before the housing bubble popped in early 2008. Median condo prices in San Francisco are now past $830,000—8.2 percent higher than the 2007 maximum. Those prices have risen 23 percent in the past year, according to Standard & Poor's/Case-Shilling home sales price index.
Much of the price hike has happened because our supply is so low. According to the Chronicle, "San Francisco has fewer than 100 new units on the market, compared with the average of 1,000 units on the market at any given time between 1999 and 2009."
So, just to get that straight, that means despite soaring tech-economy-fueld demand, our condo supply has diminished by a factor of ten from its historical average. That means that the price for a new condo has soared to a minimum of $1,000 per square foot—if not higher. (And that's not to mention homeowners' association dues.)
The good news? A flurry of new construction is expected to dramatically ease the under-supply in the next 36 months. You know, if we haven't paved the Bay to make more space by then. Maybe just a little bit? Please?