The Bay Area's burgeoning economy has produced more jobs than housing units, particularly in job-rich communities. Consequently, the cost of buying or renting a place to live in the region has soared. Given the amount, location, and type of housing being planned, the region's housing costs are expected to remain among the highest in the nation. That discrepancy will exacerbate the region's problems, such as traffic congestion.
Rental rates are also high and rising sharply.
Between the end of 1995 and the third quarter of 1997, rents rose an average of 33.3 percent in San Francisco, 29.1 percent in Santa Clara County, 24.6 percent in San Mateo County, and 16.9 percent in Marin County, according to Realfacts, a Novato data service. In contrast, the U.S. Consumer Price Index rose only 5 percent during the same period. In the Bay Area, single-family detached homes are beyond the reach of many households. Those more affordable in price tend to be built far from jobs and public transit. This conformity of design also limits the options available to increasingly diverse families, including multigenerational households whose numbers are projected to increase substantially.