**San Francisco’s Soaring Crime Rate Takes a Bite Out of Real Estate Values**
In crime-ridden San Francisco, the value of residential real estate dropped by a staggering 16.7%, a far cry from the national decline of 3.3%. The city’s housing market plummeted, losing an estimated $260 billion compared to the national trend. The price drop is a result of the city losing over 65,000 residents, a statistic largely attributed to the growing crime rate and deteriorating quality of life.
Once a high-profile city, the recent decrease in real estate values plummets San Francisco’s housing stock from an estimated $2 trillion to significantly lower figures, according to Zillow. As the city lost a whopping 7.5% of its population, the New York Post reports over 500,000 people have fled from California since the COVID-19 pandemic began in 2020, with San Francisco County experiencing the steepest decline at 7.1%.
Notoriously high-priced neighborhoods, such as Pacific Heights and Nob Hill, were severely impacted. With the likes of Nancy Pelosi and Julia Roberts as neighbors, the median home price in Pacific Heights decreased by more than 20%, dropping from $2.05 million to $1.6 million. Similarly in Nob Hill, the median home value fell from a staggering $1,662,500 to a more modest $1,170,000, a startling 33% decline.
Reports suggest that the city’s grimy streets could be a reason for the plummeting values. A shocking 90% of the streets in Nob Hill are littered with feces and used hypodermic needles. Even with a dedicated sanitation team, boasting an annual salary of about $211,000, the cleanliness of San Francisco’s streets have only grown worse. The city reportedly spends nearly five times as much on street sanitation compared to similar cities, but their efforts seem futile as the streets continue to deteriorate.
The rise in crime and decline in sanitation are further exacerbated by San Francisco’s tolerance of illegal drug use. The first quarter of this year saw a staggering 200 drug overdose deaths in the city, a rate nearly 3.8 times higher than national averages.
**A Struggling City: San Francisco’s Lost Residents and Plummeting Real Estate Values**
San Francisco’s recent loss of residents and the dramatic decline in its real estate market serve as an ominous warning. Unless the city addresses the skyrocketing crime rates and filthy streets, San Francisco will continue to watch its once-vibrant appeal fade away. The need to act swiftly and forcefully is more crucial than ever. It is a matter of paramount importance for the city’s survival as a major metropolitan area.