Jobs and Housing (Im)balance in the San Francisco Bay Area
Center for Applied Housing Research, Working Paper 2018-3
13 Pages Posted: 27 Nov 2018
Date Written: November 1, 2018
In this paper, we review and synthesize the academic and policy literature on jobs and housing balance with particular attention to the San Francisco Bay Area. Specifically, we discuss the economics of housing supply and demand to better understand the distribution of home prices and the jobs-housing imbalance. Land use regulations in the San Francisco housing market are the biggest impediment in restricting housing supply in a 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 urban labor markets, and losses in overall productivity of workers. We discuss various facets of housing demand including data on employment growth, wage growth, and productivity growth. In the long run, land use regulations are onerous and rob the San Francisco Bay Area from achieving its full potential in economic output and regional productivity. Finally, we discuss policy interventions that can minimize the adverse effects of the jobs-housing imbalance in the San Francisco Bay Area.
Keywords: Housing, San Francisco Bay Area, Imbalance, Supply, Demand, Regulation, Real Estate, Land Use
JEL Classification: O1, O2, R1, R2, R3, R5
Suggested Citation: Suggested Citation