Uptin Saiidi, a former CNBC journalist turned digital nomad, has returned to San Francisco after two years to assess whether the city is improving or deteriorating. His findings paint a complex picture: while some aspects have shown progress, others, particularly downtown real estate, appear to be in a dire state. According to Saiidi, the once-vibrant areas of San Francisco now resemble ghost towns, with plummeting property values and widespread business closures.
A Sharp Decline in Real Estate Values
Saiidi highlights a staggering example of the real estate crisis in downtown San Francisco. A building that sold for $62 million in 2016 recently went for just $6.5 million, marking a 90% drop in value. This decline is not isolated, as numerous retailers like McDonald’s, Whole Foods, and Walgreens have also pulled out of the city. Even the iconic Macy’s in Union Square is shutting down, a telling sign of the broader economic struggles facing the city.
Crime and Its Consequences
The surge in crime has exacerbated these issues, contributing to the exodus of businesses and residents. Saiidi recounts an incident at Trader Joe’s where workers were egged and food was stolen, underscoring the sense of lawlessness that pervades parts of the city. This rise in criminal activity has not only driven businesses away but has also made the city feel unsafe for many of its inhabitants.
Homelessness and Public Health Crisis
San Francisco’s homelessness crisis has intensified, particularly in areas like the Tenderloin. Saiidi describes the Tenderloin as once bustling with nightlife but now plagued by homelessness, drug use, and poverty. During the pandemic, deaths among the homeless population doubled, primarily due to drug overdoses. Despite efforts to provide resources and mental health support, the problem persists, contributing to the city’s deteriorating public image.
Housing Market Challenges
While the homelessness crisis worsens, the housing market remains prohibitively expensive. The median sale price for a single-family home is around $1.3 million, and rents for two-bedroom apartments often exceed $3,000. This high cost of living deters potential residents and office workers from moving into the city, further straining the local economy.
The Vicious Cycle of Office Vacancy
Saiidi notes that San Francisco is caught in a vicious cycle: the lack of office workers reduces economic activity, leading to more business closures, which in turn makes the city less attractive to new residents and workers. With many people continuing to work from home, office occupancy rates are struggling to recover, leaving downtown areas eerily empty.
Signs of Hope and Resilience
Despite these challenges, Saiidi observes some signs of hope. There is a younger crowd moving into the city, and certain areas are seeing a resurgence in activity. Events and sports games are drawing people back, and some businesses are beginning to see more foot traffic. However, significant hurdles remain, particularly in making the city attractive for new businesses and residents.
The Role of AI and Technology
Saiidi mentions that some believe advancements in artificial intelligence and technology could help revitalize San Francisco. Events bringing together tech enthusiasts from around the world are a positive sign, suggesting that the city could leverage its historical role as a tech hub to spur economic recovery.
“Need to Be Tough on Crime”
People in the comments shared their thoughts: “They need to be tough on crime and clean up the homeless”
Another person said: “California and cities like san francisco keep voting for this idiocy. Soft on crime policies are destroying this kind of city.”
One commenter added: “The politicians definitely have destroyed this beautiful city. It’s so sad!”
The Path Forward
San Francisco’s future hinges on addressing its deep-rooted issues while capitalizing on its strengths. Saiidi remains cautiously optimistic, pointing out that the city has historically rebounded from crises. However, substantial efforts are needed to improve safety, reduce crime, and make the city more livable. As Saiidi aptly puts it, the question isn’t just whether San Francisco can be saved, but whether people will choose to invest in its recovery and return to live and work in the city.
Economic Recovery
What are your thoughts? What specific measures should San Francisco implement to rejuvenate its downtown economy and attract new businesses? How can the city make housing more affordable for both current residents and potential newcomers? What strategies can be employed to effectively reduce crime and improve public safety in San Francisco?
See the full video on Uptin’s YouTube channel for more details here.
