The basic problem is simple: lots of demand chasing little supply, as discussed extensively here: <a href="http://www.slate.com/articles/business/moneybox/2012/05/facebook_george_lucas_and_nimbyism_the_idiotic_rules_preventing_silicon_valley_from_building_the_houses_and_offices_we_need_to_power_american_innovation_.html" rel="nofollow">http://www.slate.com/articles/business/moneybox/2012/05/face...</a> (HN discussion: <a href="http://www.slate.com/articles/business/moneybox/2012/05/facebook_george_lucas_and_nimbyism_the_idiotic_rules_preventing_silicon_valley_from_building_the_houses_and_offices_we_need_to_power_american_innovation_.html" rel="nofollow">http://www.slate.com/articles/business/moneybox/2012/05/face...</a> ). See also this: <a href="http://www.theatlantic.com/magazine/archive/2007/11/a-tale-of-two-town-houses/6334/" rel="nofollow">http://www.theatlantic.com/magazine/archive/2007/11/a-tale-o...</a> .<p>This is one of these problems that has a simple, obvious solution—raise or remove height limits, mandatory building setbacks, and parking space requirements—that will probably be ignored in favor of grandstanding and lots of small, fiddly solutions that don't deal with the overall problem.
Calculated Risk (<a href="http://www.calculatedriskblog.com" rel="nofollow">http://www.calculatedriskblog.com</a>) did a series on the upcoming SF rent/real estate bubble, as well as the return of housing back in early 2012. I highly recommend this awesome blog for my fellow HNers - it plays host to great discussions/links/facts on the economy, housing, finance and the global/domestic (US) recovery.<p>The direct links for those who want more detail:<p><a href="http://www.calculatedriskblog.com/2012/04/san-francisco-rents-on-tear.html" rel="nofollow">http://www.calculatedriskblog.com/2012/04/san-francisco-rent...</a><p><a href="http://www.calculatedriskblog.com/2012/04/bottom-for-house-prices.html" rel="nofollow">http://www.calculatedriskblog.com/2012/04/bottom-for-house-p...</a><p><a href="http://www.calculatedriskblog.com/2012/04/wsj-on-housing-bidding-wars-are-back.html" rel="nofollow">http://www.calculatedriskblog.com/2012/04/wsj-on-housing-bid...</a><p><a href="http://www.calculatedriskblog.com/2012/04/private-money-coming-back-into-housing.html" rel="nofollow">http://www.calculatedriskblog.com/2012/04/private-money-comi...</a><p>And a summary about all of the above that I found on Quora can be found here (scroll to the bottom - ignore the editorializing): <a href="http://www.quora.com/the_edge/Intriguing-answer-on-Silicon-Valley-bubbles-manias-booms-busts-crashes-and-winning-the-startup-lottery" rel="nofollow">http://www.quora.com/the_edge/Intriguing-answer-on-Silicon-V...</a>
I used to live in a building near a Google shuttle stop on the border of the TL. They wanted to raise my rent almost 20% y/y for a lease renewal, and the place was a <i>trainwreck</i> quality-wise (as was the neighborhood.)<p>When I went to move out, the leasing agent just shrugged and said "Some Googler will happily pay even more than that."<p>The real problem is SF prohibiting any dense housing from being built anywhere in the city and also the failure of running reliable/usable public transit to any region outside of the area bounded by BART and Market Street. Rent control certainly doesn't help (though I think there should absolutely be a rent stabilization law -- everywhere.)
Did anybody see the other article in WSJ about SF real-estate? The title is "China in Talks With U.S. Home Builder / State Bank in Talks to Provide Lennar $1.7 Billion for Two Long-Stalled Projects [for 20,000 units in SF]"<p><a href="http://online.wsj.com/article/SB10001424052702304458604577489062449154168.html?mod=WSJ_hp_editorsPicks_3" rel="nofollow">http://online.wsj.com/article/SB1000142405270230445860457748...</a><p>Pwn'd is the word that comes to mind.
I experienced this first-hand as I just signed a place a little over a month ago. Compared to what was listed the apartment we ended up with was several hundred dollars cheaper, and we competed with at least 10 other applicants for the place.<p>However, as I talk to more people they think we are overpaying several hundred dollars based on what they are paying for comparable units, most of which were signed around a year ago.
What should someone do if they're moving to SF and want to live in SOMA or nearby neighborhoods? Does anyone have any recommendations? It seems like there aren't that many choices for buildings, and a lot of them aren't that new. All of the reviews I have read (for almost all of the buildings) sound mediocre or negative.
For those who are finding it hard to rent a place, I have a suggestion for you: move to Berkeley. Amazing food. Great weather most of the time. And if you live near BART station its not that far if you work in SF.