San Francisco and the Bay Area is general have been witnessing a boom in real estate that became prohibitive for middle class people to buy or rent a house or an apartment. This beautiful cultural city, with the most colorful Victorian houses, has become affordable only to the Rich and the Elites of the Silicon Valley.
“The total cost of living in San Francisco is more than 62 percent higher than the national average. The median rent in the city is $4,500.” According to financial website SmartAsset.
There are dramatic and unbelievable stories on how people can cope with this situation to be able to work there. Again, work there but not live there.
How can you do one without the other. There are only two possibilities.
You can live there but work outside or you can work there but not live there. Both are very hard to achieve. I still need to meet or read a story about the former situation. But the later scenario there are some unique and bizarre stories. I will share three stories with you.
The first came on a headline that goes like this:
“This 30-year-old commutes 4 hours, and 140 miles, every day so he doesn’t have to pay $4,500-a-month San Francisco rent”
I am not here to judge the insanity of someone who practically waste half a day for work. It must the high salary in San Francisco and low mortgage in Dixon 70 miles away.
His decision, that really make a lot of sense, “was in response to the exorbitant housing prices in San Francisco. Job opportunities there are plenty, specifically in the career field that I wanted to get into, but the cost of living can make it hard for people to call it home.”
The other big story comes from Business Insider Dec. 6, 2017 article with the following headline:
“San Francisco rent is so expensive that a law firm bought a $3 million plane to fly its people in from Texas instead of having them live there”
Again, they had this logical explanation: Instead of hiring expensive talent in the Bay Area, one Houston-based law firm flies its lawyers in on a private jet once a month to meet with clients.
The third example is the “Communal or Co-Living” looks like a cult communal but it is not because the headline for the article is the following that was published on August 23, 2018:
“Tired of Dirty Dishes and ‘Hacker Houses, ‘Co-living’ offers more affordable rent”
Millennials are here for a treat. Instead of commuting for a half a day, or flying back and forth to the Silicon Valley, even on a private plane, they are offered a Communal or Co-Living option. Skeptics of the model might wonder how co-living is different from old-fashioned roommates. It isn’t, except that instead of 5 roommates mismanaging the renting facilities on their own, they will let a managing company to do for them.
If there a lesson to learn from this tale, it will be that the Silicon Valley will continue to boom, and the real estate market will continue to grow, and the cost of living will rise even more. We could only hope that the bubble will not burst, or all the middle class will give up and leave. If so, San Francisco will the City of the Rich and Homeless.
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