San Francisco: Some say rumors of “doom loop” are exaggerated

Daily SF News — Fri, 15 Mar 2024 12:26:18 +0000

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Is San Francisco really doomed? Depends on who you ask

Let's start with what most people agree on: The pandemic has hit cities hard – and San Francisco especially hard.

Many workers in the city's bustling tech sector traded their downtown office for a desk in a house with lower rent and more space outside the city — or out of state. The exodus set off a chain reaction that affected the cafes, restaurants and other businesses that relied on downtown foot traffic.

Then came the headlines about a city in a state of decline. And the conservative right's narrative of a failed city filled with homelessness, open drug use and crime that can only be attributed to their own liberal policies.

But the city still has its defenders. They sense a comeback, claiming that “alternating between upswings and downswings is simply a natural part of San Francisco's rhythm,” Times Bay Area and North Shore reporter Hannah Wiley wrote this week.

The next boom they're eyeing: artificial intelligence.

“Several tech leaders interviewed — some who have spent decades in Silicon Valley, others are newcomers to the region — argue that San Francisco and the broader Bay Area continue to be a thriving nerve center of talent, institutional knowledge and abundant venture capital,” Wiley reported.

It's not just optimistic technicians. Wiley pointed to some recent data that challenges the downward spiral narrative.

First, more people are moving to San Francisco and neighboring Bay Area counties than are moving away. This is notable because the state of California has lost more residents overall in recent years than it has gained. Housing costs have also fallen.

And it's always smart to keep your eye on the money, like Wiley did.

“According to an October report from Ernst and Young, the Bay Area maintained its top spot nationally for venture capital investment last year, followed by Boston and New York, thanks in part to investments in artificial intelligence,” she noted.

There may be some positive signs for technology, but the recovery from the pandemic hasn't been great for everyone. The city continues to lose one population group: people aged 25 and over without a university degree.

Some people Wiley spoke with expressed more caution about the city's future, citing high office vacancy rates and reduced on-site employee attendance.

“Downtown was a pretty rich ecosystem before the pandemic. But at its core, it was about people coming to work in offices,” Ted Egan, San Francisco’s chief economist, told her. “Until you get that back, it will be difficult to get a positive dynamic going again in the city center.”

Still, some feel that the city is slowly but surely entering a new era.

Here's a bright spot (or maybe a weak spot?) that particularly caught my eye: the revitalization of United Nations Plaza into a skateboarding destination. If you're looking to bring fresh energy to an urban core, skateboarding might be just the ticket.

You can read more from Wiley about optimism in San Francisco.

Today's top stories

Beverly Hills is facing a moratorium on building permits after a judge ruled that the city does not have a state-approved affordable housing plan.

(Gary Coronado/Los Angeles Times)

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(Francine Orr/Los Angeles Times)

Lions, tigers and a monkey in a bulletproof vest: get to know Mexico's exotic pets. In Sinaloa, Mexico, home to one of the world's most powerful drug cartels and famous for its displays of wealth, people are in search of exotic animals.

For your time out

Geothermal water flows into a lake at Murrieta Hot Springs Resort. The site is a geothermal spa with a history dating back more than a century. For nearly 30 years, the property served as a Bible school and Christian retreat center. The property was sold in 2022 and the new owners renovated the property to open it to the public.

(Myung J. Chun / Los Angeles Times)

Go out

Stay inside

And finally… from our archives

On January 18, 1994, the Los Angeles Times devoted the front page to coverage of a magnitude 6.7 quake in Northridge that ultimately left more than 9,000 injured, 60 fatalities, and up to $20 billion in property and economic damage This resulted in losses of $40 billion.

(Los Angeles Times)

Here's the front page of the Times, 30 years ago today. After the magnitude 6.7 Northridge quake killed 60 people and damaged much of the county, radio broadcasts and newspapers were one of the few sources of information residents had. The Times published its story the day after the earthquake and continued publishing as Los Angeles began to recover. This week, Times news and culture critic Lorraine Ali wrote about survival in Northridge, noting, “The sound of newspapers being thrown onto driveways provided a semblance of normality in the chaos.”

Have a great day, the Essential California team

Ryan Fonseca, reporter
Elvia Limón, multiplatform editor
Kevinisha Walker, Multiplatform Editor
Laura Blasey, deputy editor

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