Gross domestic product grew at a 0.7% annual rate in the first quarter from the preceding three months, the Commerce Department said Friday. Economic output has grown an average of roughly 2% during the nearly eight-year expansion.
San Francisco and San Mateo counties in the Bay Area have passed a grim milestone reflecting extreme housing costs: The federal government now considers households in the counties which make $100,000 a year to be “low income,” making them eligible for federal housing programs for poor families, most notably Section 8 vouchers that allow more than 2.2 million U.S. families to pay only 30 percent of income toward rent.
Real estate brokerage site Redfin released its annual "migration report" on Monday and found that those residing in San Francisco Metro are the most likely to leave. The catalyst for moving – high housing costs – should surprise no one.
Analyzing a sample of 1 million Redfin users, the site found that 19.4 percent of potential homebuyers in San Francisco searched outside of the region for houses.
San Francisco also recorded the highest ""net outflow"" – the number of potential homebuyers looking to move to San Francisco Metro subtracted from the number of those who want to leave. The region's outflow was double that of New York.
The apparent growing appetite for suburban living presents a unique challenge to California. The state policy is aggressively anti-suburban, placing ever-higher hurdles on any development on the periphery. This, over time, is slowing construction in the interior and forcing housing prices unnaturally up, even in these areas.
Some so-called progressives hail these trends, as forcing what they seem to see as less desirable elements — that is, working- and middle-class people — out of the state. They allege that this is balanced out by a surge of highly educated workers coming to California. Essentially, the model is that of a gated community, with a convenient servant base nearby.
“The bottom line: If you see a growing Latino middle class, you will see a growing Latino representation in government,” said Mike Madrid, a veteran political strategist and author of a study by the newly formed California Latino Economic Institute. The CLEI report, which looks into economic as well as political issues, was jointly commissioned by the Legislature’s Latino Caucus and the California Business Roundtable.