Jobs and Housing (Im)balance in the San Francisco Bay Area

Abstract

A lack of affordable housing is a growing crisis for many communities in the US, particularly in urban neighborhoods with constrained housing markets. We discuss the housing imbalance and affordability crisis in the San Francisco Bay Area. Land use regulations are the biggest impediment in restricting housing supply in this robust and booming urban economy. Indirect effects of land use regulations are observed in the loss of housing wealth, greater spatial distribution of people across labor markets, and losses in overall productivity of workers. Specifically, we discuss the dynamics of housing supply and demand in the area to better understand the distribution of home prices and lack of affordable housing as it relates to the jobs-housing imbalance. We discuss various facets of housing demand, including employment, wage, and productivity growth. Finally, we discuss policy interventions that can minimize the adverse effects of the jobs-housing imbalance and promote greater housing affordability.