The cost of housing in San Francisco will drive away one third of bay area residents in the next few years, according to a new report from the Bay Area Council.
Residents say they are frustrated by a real estate market that has driven the cost of housing up by 23% in recent years.
In the last year alone the cost of housing has surged by 11.5% to a median home price of $1.13 million.
A two-bedroom apartment in San Francisco now costs $4,690 on average, according to Apartmentlist.com.
Residents also say the city has become too congested with 13% of residents saying the city has become too busy on its roadways.
“Losing even a fraction of that number and the talent they represent because we failed to deal with our most pressing issues would be very bad,” said Jim Wunderman, president and CEO of the Bay Area Council in a release.
The Bay Area Council is a business-sponsored public policy group. The survey included 1,000 residents in the Bay Area’s 101 cities.
San Francisco’s biggest concern might be losing its young, up and comers. Millennials were among the most likely group to flee the city for other areas.
Group spokesperson Rufus Jeffris said, “That is the future workforce and talent that is helping drive the innovation economy and tech sector…we need to stop this now.”
Nearly half (46%) of people with incomes over $125,000 believe the Bay Area is headed in the right direction. As expected, that optimism level drops as household incomes lower.
“It sends a bad message about the Bay Area economy and that there isn’t an open door for top talent to come and work here,” said Jeffris. “It can hurt the diversity of our economy. We need all skill levels and income levels to have a strong economy that is resilient to a downturn.”