SF restaurants are suffocating
Having >10K karma on here and knowing people involved in this restaurant and the SF scene in general.. I can make these observations:1. The vast majority of people on HN are in complete denial about the impact of a massive sudden influx of demand on SF housing.2. They will exclusively talk about supply constraints and also totally ignore the concept of price inelasticity due to inexhaustible levels of demand.3. pg himself had noted the importance of a vibrant restaurant scene for startups.[1]4. This truly is a widespread problem for all SF restaurants. Nopa, one of the most prestigious midrange restaurants, has been advertising for cooks in their menu for years now.5. In order for the market rate price of housing to become affordable to cooks and servers, it would first become dirt cheap for tech workers making 2-4x their compensation. Therefore all of that worldwide demand for SF tech worker housing would need to be satiated before the market solves this problem. (See point 2.)6. Most tech workers don’t give a shit. They are here to hopefully make their fortune or at least get their career started in the next 5-10 years. A vibrant restaurant or working class community is not a priority. If they burn through it, it’s fine. Long term community development goals are a “nice to have”.7. Only reserved means-tested housing for the working class will solve this problem. This is what divides the “market YIMBY” and “affordable housing PHIMBY” political groups in local SF politics. It’s not just about ethics.. If you want a vibrant city rich with interesting restaurants and cafes then you need to provide housing for the service industry. Otherwise you face a real macroeconomic problem.[1]  http://www.paulgraham.com/pgh.html