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a series of articles regarding the affordable housing crisis
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Atlantic
San Francisco's Self-Defeating Housing
Activists
Tech companies and workers are vilified while longtime homeowners who
fight high-density growth continue to profit from rising rents and property
values.
Noah Berger / Reuters
CONOR FRIEDERSDORF
POLITICS
DEC 29, 2015
A recent This American Life episode, "Poetry of Propaganda," describes a San
Francisco after-school program's production of an original musical starring
young children. "I don't know what I expected," said the writer Jon
Mooallem, whose daughter played a tiny part, "but it wasn't this. Act One
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opened on a sinister tech-executive meeting with a corrupt mayor and San
Francisco's board of supervisors."
His daughter was a 6-year-old kindergartner at the time.
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The ensuing plot featured a cartoonishly evil technology company that
conspired to oust salt-of-the-earth tenants from a multicultural group house
to satisty naked greed.
It was a commentary on gentrification in the city.
"The eviction song killed. Everything killed, which was strange, given
something I haven't mentioned til now. Maybe half the parents in the
auditorium worked in tech," Mooallem wrote. "And now they were watching
their own children spear them as cartoon villains, literally cackling and
throwing money over flutes of champagne, as they plotted the eviction of all
those nice people. No one in the audience booed, of course, or huffed or
stamped out. We were watching our kids perform. But I can't imagine what it
must have been like to keep smiling along as you suddenly realized that for
weeks after school, your own son or daughter had been rehearsing songs that
mocked both you and the job you were off working, which is why you'd been
forced to entrust your kids to the after-school program in the first place."
The rest of his This American Life story is a thoughtful meditation on political
art, propaganda, having children perform it, and the reactions of parents
implicated in its message-particularly Mooallem's own reaction as someone
whose greatest source of anxiety for a couple of years was the financial strain
of remaining in that city, in part because those parents in tech really had
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helped to bid up local prices.
You can listen to the whole piece here.
My instinct is against propagandistic art, whether judged as aesthetics or
pedagogy. But even if there were nothing objectionable about indoctrinating
6-year-olds, the musical would have fallen short in the same way that San
Francisco as a whole has in grappling with the most significant reason for its
affordability crisis: the widespread opposition of its left-leaning residents to
lots more new building.
That isn't the lone factor driving up rents. And almost no one responsible is a
cartoonish villain. But if the musical's director aim was to present
oversimplified truths for the sake of social justice, the main antagonists
shouldn't have been evil politicians and tech executives—it should have been
property owners gleefully watching the value of their biggest assets skyrocket
as they aggressively blocked high-density development. Their success has
caused much misery.
The homeowners see themselves as upright "preservationists," protecting
the character of their city even as they turn it into a time-capsule for the old
and rich. In my propaganda play, they'd be sympathetic with the plight of the
working class, but wouldn't value them nearly as much as living amidst
refurbished Victorians. They'd prevail by tricking economically illiterate
activists into allying with them after sneakily tearing the supply-and-demand
chapters from their econ textbooks.
Of course, a plot of that sort would never be produced at a San Francisco
after-school program, though it would be as earnestly aimed at making
housing more affordable. Only progressive-inflected propaganda is able to
pass itself off as art in Blue America. "We do not attempt to answer questions
with our art," the director of the children's musical declared, "but rather to
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" Yet I suspect my made-up plot would do more to provoke and
ask questions.
challenge audiences in leftist enclaves than another narrative casting
willfully evil corporations as stock villains.
Don't get me wrong. Corporations do lots of evil things!
But on this issue, the main thing that tech companies have done to fuel rising
rents is to create lots of high-paying jobs, employing members of a
generation who are more likely than their parents to prefer cities to suburbia.
And techies are not against building affordable units. In fact, cheaper
housing in the Bay Area aligns with their interests.
As Gabriel Metcalf put it in City Lab earlier this year:
By the early 1990s it was clear that San Francisco had a fateful
choice to make: Reverse course on its development attitudes, or
watch America's rekindled desire for city life overwhelm the
openness and diversity that had made the city so special. When
San Francisco should have been building at least 5,000 new
housing units a year to deal with the growing demand to live here,
it instead averaged only about 1,500 a year over the course of
several decades. In a world where we have the ability to control the
supply of housing locally, but people still have the freedom to
move where they want, all of this has played out in predictable
ways.
The city's ideological progressives have exacerbated the problem:
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Instead of forming a pro-growth coalition with business and labor,
most of the San Francisco Left made an enduring alliance with
home-owning NIMBYs. It became one of the peculiar features of
San Francisco that exclusionary housing politics got labeled
"progressive." Over the years, these anti-development sentiments
were translated into restrictive zoning, the most cumbersome
planning and building approval process in the country, and all
kinds of laws and rules that make it uniquely difficult, time-
consuming, and expensive to add housing in San Francisco.
In "SE's Housing Crisis Explained," a deep-dive that Tech-Crunch published
in 2014, Kim-Mai Cutler provides some numbers that give even more useful
context:
San Francisco has a roughly thirty-five percent homeownership
rate. Then 172,000 units of the city's 376,940 housing units are
under rent control. (That'
's about 75% of the city's rental stock.)
Homeowners have a strong economic incentive to restrict supply
because it supports price appreciation of their own homes. It's
understandable. Many of them have put the bulk of their net worth
into their homes and they don't want to lose that.
So they engage in NIMBYism under the name of preservationism
or environmentalism, even though denying in-fill development
here creates pressures for sprawl elsewhere. They do this through
hundreds of politically powerful neighborhood groups throughout
San Francisco like the Telegraph Hill Dwellers. Then the rent-
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controlled tenants care far more about eviction protections than
increasing supply. That's because their most vulnerable
constituents are paying rents that are so far below market-rate,
that only an ungodly amount of construction could possibly help
them. Plus, that construction wouldn't happen fast enough -
especially for elderly tenants. So we're looking at as much as 80
percent of the city that isn't naturally oriented to add to the
housing stock. Oh, and tech? The industry is about 8 percent of
San Francisco's workforce.
Yet it remains the villain of the artistic left. Cutler goes on to point out that
"the city's height limits, its rent control and its formidable permitting process
are all products of tenant, environmental and preservationist movements
that have arisen and fallen over decades," and that "the sophistication with
which neighborhood groups wield San Francisco's arcane land-use and
zoning regulations for activist purposes is one of the very unique things about
the city's politics. But the city's political leadership doesn't want to change it,
because it fears backlash from powerful neighborhood groups, which actually
deliver votes."
The cost of housing in San Francisco is a burden to the working and middle
classes. It is the product of choices fueled by the self-interest and even greed
of the well-off at the expense of the less well-off. But many of the San
Francisco activists most passionate about improving affordability in theory
are pursuing that goal in economically dubious ways that are, as often as not,
counterproductive. The city's overworked, underpaid housing lawyers can
protect a few incumbent tenants from being evicted by especially
underhanded landlords who skirt laws that hurt their bottom line. But theirs
will be a losing battle until a great deal more high-density housing is built.
Development that hits high-density targets is the only viable policy fix and
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ought to be the highest priority of affordability proponents.
Alas, well-intentioned incumbent San Franciscans are ideologically prone to
look for villains elsewhere, and averse to any major changes to the aesthetic
of the city they love. The city needn't lose all its history or its charm to
prosper. But it must grow and change a lot, just as it did when the homes
owned by its NIMBYs were built.
It doesn't matter if many of the locals keep hating tech companies.
But I'll be optimistic that the root of the problem is finally be addressed only
if and when the progressives of San Francisco-and low-density peninsula
municipalities south of it—stop singling out tech companies for opprobrium
and begin to cast preservationist homeowners, the anti-density wing of the
environmental movement, and other anti-growth forces as the villains of
their morality plays.
ABOUT THE AUTHOR
CONOR FRIEDERSDORF is a staff writer at The Atlantic, where he focuses on politics
and national affairs. He lives in Venice, California, and is the founding editor of The
Best of Journalism, a newsletter devoted to exceptional nonfiction.
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