Rent a bunk bed for $1,200 a month? Idea sparks pushback from SF officials

SAN FRANCISCO — There are cities where $1,200 a month will buy you a bedroom with a door. In San Francisco, it gets you a bunk bed.

That’s PodShare — the latest housing hack born from the state’s shortage of affordable homes. The Los Angeles-based startup recently opened its first Bay Area location in San Francisco’s Tenderloin neighborhood and already is causing a stir among community members and city officials, who are investigating whether the company is violating the city’s short-term rental and occupancy rules.

“We believe that you only really need a small space to yourself to sleep, relax and store your belongings. The rest of our space … is shared,” the company’s website explains. PodShare already operates five Southern California bunk bed communities.

But a city official said the PodShare property appears to violate San Francisco city ordinances and codes, and the city has received multiple complaints about the startup. PodShare already has tweaked its plans at the city’s behest but will need to do more before it is fully compliant.

PodShare renters sleep stacked in custom bunk beds set up in one large room, with no doors between them. Each unpainted, wooden bed, or “pod,” includes a personal television, nightlight, outlets and storage space, and renters share a communal kitchen and lounge space. For those digs in San Francisco, the PodShare website says a renter pays $60 a night, $350 a week or $1,500 a month. But founder Elvina Beck said the monthly price is actually $1,200.

“We’re not replacing apartment buildings,” she wrote in an email to this news organization, “but rather offering a reliable brand to stay with when first moving to the city without a job or any friends.”

The San Francisco location opened May 15 with six beds, Beck said.

So far, there are three reviews of the property on Airbnb. One complained the shower was cold and there was residue on the towels, but another reviewer called it “perfect for my minimalist needs.”

The unique, hostel-like setup is making its Bay Area debut at a time when a shortage of available homes here has driven rent prices to staggering heights and forced many residents to either move out or seek creative, and sometimes desperate, solutions. The median rent for a one-bedroom apartment in San Francisco was $2,470 last month, according to Apartment List. As a result, co-living has become an increasingly popular option for renters hoping to cut costs. The San Jose City Council earlier this year voted to allow co-living spaces, prompted by Starcity, which plans to build an 800-unit building in downtown San Jose where residents will sleep in small bedrooms and share common space. Starcity already operates a handful of co-living communities in San Francisco.

Even in co-living housing models, residents typically have their own private bedroom with a door — not bunk beds shared with strangers. But it’s not the bunk beds that are giving San Francisco officials pause. The city learned about PodShare’s new San Francisco house at the end of last month, when several community members filed complaints. The first problem was that the startup offered beds for $60 a night — a violation of the city’s short-term rental policy, which bans rentals of fewer than 30 days unless the landlord lives in the home (which Beck doesn’t appear to, according to Omar Masry, senior analyst with San Francisco’s Office of Short Term Rentals).

Masry told Beck about the violation, and she agreed to cancel pending short-term reservations and change her Airbnb listing, he said. Now the San Francisco PodShare listing on Airbnb specifies that stays must be for 30 days or more.

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These bunk beds are available for rent by PodShare, a Los Angeles-basedstartup that recently made its Bay Area debut with a house in SanFrancisco’s Tenderloin neighborhood. (Photo courtesy of PodShare) 

That’s not the end of PodShare’s problems. The startup doesn’t have permission from the city to operate group housing, Masry said. But unlike in some areas of San Francisco, PodShare’s neighborhood is zoned to allow group housing, meaning Beck potentially could apply for that designation.

“There’s a possible path to legalize either all or some of her business model,” Masry said.

To do that, Beck also would need to comply with the city’s building and fire codes — particularly making sure there was a safe way for occupants to exit in the event of an emergency.

“It seems like she kind of jumped the gun,” Masry said.

Beck agreed that she and her team “need to go through the process” of getting approved for group housing.

The city’s building department inspected the property Friday and found “possible violations of the building code,” according to a city report. The next step is to issue a notice of violation.

Meanwhile, PodShare is sparking worry from some community members.

“We spent a couple of years reining in Airbnb, VRBO, HomeAway and the many, many other outfits cannibalizing scarce housing for tourist accommodations,” Dale Carlson, co-founder of ShareBetter SF, a group critical of home-sharing platforms, wrote in an email. “We don’t want (another to) come to town and ignore the rules put in place to protect housing opportunities for working families and the small neighborhood businesses that meet their needs.”

But Beck defended PodShare as a helpful housing option. She’s considering expanding her Bay Area footprint and has been in touch with San Francisco officials about setting up a bunk bed community of 20 beds in a property on Lombard Street. The property currently is being used as a karate studio.

“The people and the city want more housing right?” Beck wrote in an email. “No one said it has to be rooms.”


Article source: https://www.mercurynews.com/2019/06/07/rent-a-bunk-bed-for-1200-a-month-idea-sparks-pushback-from-sf-officials/

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Article source: https://www.cnn.com/2019/05/09/success/silicon-valley-real-estate-market-home-prices/index.html

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Bay Area, California running out of people to hire: forecast

The job markets in the Bay Area and California are seeing dramatically low unemployment rates, creating a tight job dynamic that could put a damper on the state’s long-running economic boom, according to a new study released Wednesday.

“The California economy is slowing down,” Jerry Nickelsburg, director of the Anderson Forecast, said in the report. “The state is, quite simply, running out of people to be employed.”

Job growth in the Bay Area and statewide has expanded for such a long time that unemployment rates have been driven to record or near-record low levels, which in turn shrinks the pool of people available to be hired by employers, the UCLA Anderson Forecast report determined.

The report noted that unemployment rates have improved dramatically in the Bay Area in the years of economic expansion since the Great Recession ended.

 Bay Area, California running out of people to hire: forecastIn April, the Bay Area jobless rate was 2.7 percent, which was a considerable improvement from the March unemployment rate of 3.1 percent for the nine-county region, according to this news organization’s analysis of seasonally adjusted figures compiled by Beacon Economics and UC Riverside.

The unemployment rates in the Bay Area were only slightly above the record-low level of 2.6 percent. Those lowest-ever levels occurred multiple times in 2018, with the most recent such instance last December, the Beacon statistics show.

Over the 12 months that ended in April, the Bay Area added 97,400 jobs, a 2.5-percent increase in the number of jobs in the region during the one-year period.

During that same one-year stretch, California added 271,000 jobs, which means the Bay Area accounted for more than one-third — 36 percent — of all the jobs added statewide.

The pace of growth of the Bay Area job market galloped well ahead of the rate of expansion for the California employment sector. The number of jobs in California increased 1.6 percent over the 12 months that ended in April.

Despite these favorable trends, the UCLA Anderson Forecast predicted the California job market will experience a steady slowdown in its rate of growth over the next few years.

Non-farm payroll jobs are expected to increase by 1.4 percent in 2019 and 0.8 percent in 2020, the report projected.

Even though the job market might be slowing down, according to the report, the prognosticators also pointed out that employment remains strong enough that it continues to put upward pressure on wages.

Real personal income, adjusted for the effects of inflation, is expected to grow 2.9 percent in 2019 and 1.9 percent in 2020, the economists predicted.

“Economic prosperity has clearly become the norm in California today,” Nickelsburg wrote in his report.


Article source: https://www.mercurynews.com/2019/06/05/bay-area-california-running-out-of-people-to-hire-forecast/

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Housing crisis: San Francisco home prices up again for spring

The good times can’t last forever: New analysis suggests that the brief and oh-so tantalizing dip in SF’s median home prices seen earlier this year has evaporated.

In April, sources like the California Association of Realtors and real estate group Compass, among others, reported that the median price of a San Francisco home declined year-over-year, albeit by a tiny figure, for the first time since 2012.

But this week, Southern California-based data firm Core Logic brought the party down by reporting that the trend reversed in May. And now Compass, based in San Francisco, concurs with its June San Francisco market report, which finds that not only are prices up in the most recent month, but for spring altogether as well.

“We consider three-month rolling median sales prices to be more reliable than single month figures, which are much more prone to less meaningful fluctuations,” notes economist Patrick Carlisle.

Comparing MLS sales for March through May of 2019, the median price of a single-family house in SF came out to $1.65 million. For the same period in 2018, it was $1.63 million.

On the one hand, that’s not much growth compared to previous years in the surreal SF market, and the April contraction contributes significantly to that diminishment.

But growth is still growth. Carlisle notes that “both houses and condos are basically back up to the peak prices they hit last year at this time.”

Median condo prices were down a bit in San Francisco compared to last year. But the difference between 2018 and today was just $5,000—and demand for condos has long been softer in the region than for single-family homes.

The median condo price reported by Compass for spring 2019 was a bit over $1.25 million.

Carlisle even holds that the number of homes sold rose during the spring year-over-year from 2018—Core Logic has held that this figure has been on the skids for months across the Bay Area—from 1,533 to 1,540.

The only category that dropped: Condos that cost $2 million or more, a decline of four units year-over-year.

The only possible good news is that the increase is too slight to be a sign of the IPO-apocalypse that housing watchers have fretted about all year. However, since employees of newly public companies like Lyft and Pinterest aren’t yet allowed to sell their shares, that could still loom on the horizon.

Article source: https://sf.curbed.com/2019/6/5/18654356/compass-san-francisco-housing-price-report-median-spring-2019-rises

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San Francisco Property Prices No Longer Breaking Records

Despite a strong spring real estate market, property prices in San Francisco have yet to climb beyond last year’s highs, according to a report from Compass on Tuesday.

April’s median home price stood at $1.63 million, just below the median of $1.64 million logged at the same time last year.

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The market’s failure to reach new highs is a significant change from the year-over-year price appreciation that the city had been logging for the past “six or seven years,” the brokerage said.

“For the time being, the most expensive housing market in the country has stopped becoming more expensive,” Patrick Carlisle, Compass’s chief market analyst for the San Francisco Bay Area, said in the report.

It’s possible, though, that the market will heat up further in the nearly two remaining months of the spring selling season, before the market slows for summer.

But by no means has San Francisco become affordable. Despite not breaking any records, median sales prices, along with other metrics, remain close to those seen at the same time in 2018, which logged “dramatic year-over-year price appreciation,” the report said.

The median house sale price, for example, in March and April was $1.65 million, compared to $1.655 last year. The median condo price change was equally negligible in the same time frame, $1.25 million compared to $1.26 million last year.

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The number of new listings dipped 4% over March and April compared to last year, while the number of sales dropped by just two.

Luxury homes sales, though, are faring better this year than last. House sales priced at $3 million and over saw a 23% increase in transactions, while all homes priced at $5 million and over saw transactions increase 25% in the same time.

Article source: https://www.mansionglobal.com/articles/san-francisco-property-prices-no-longer-breaking-records-201910

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