Forget the flowers, what you'll need in San Francisco is a load of money for the rent

San Francisco is a great city. Today it's a great city filled with billionaires, something that rather explains its problems (or why they're not being sorted out). But San Francisco, in one respect, isn't unique but just the best example of how to truly, utterly screw up your housing markets.

We arrived in San Francisco by train. Sorry, we arrived in San Francisco on a bus (an hour late bus) because the train doesn't go to San Francisco, it finishes in Emeryville on the other side of the bay. So we arrived at a bus station, a bus station without a taxi rank (I guess because the sort of people who arrive in San Francisco on a bus aren't the sort of people who use taxis). It seems that, for all its progressive credentials, San Francisco's relationship with public transport - at least the sort that brings people into and out from the city - is not great. As, it seems, Google employees discovered with their benign employer laid on buses to work.

Anyway. Having got a taxi (big thanks to the bloke in the bus ticket office who rang for one - pretty sure it's not the first time), got to our hotel and settled in by having some nice pasta and a hugely expensive bottle of white wine, we'd a city to explore. And what better way to do this exploring that by buying a bus ticket!

The Big Bus was great. For a couple of days we'd access (at a good San Francisco price) to their buses as they toured round San Francisco. And some of these buses have a guide - in our case a thirtysomething Jewish guy with a beard and ready wit. As we went round the city he described the sights, elaborated on the history and pointed out things we might not have otherwise noticed.

So the bus is going up Market heading towards the Tenderloin as our guide starts to talk about the rent - and why it's so damned high. All this is nicely mixed in with the history of the great San Francisco earthquake and fire of 1906. Pointing to some early 20th century apartment buildings, our guide, says: "there are SROs, let me tell you about SROS".

SRO is an acronym for 'single room occupancy' and it's a form of tenure where, for your rent, you get a room with a basin. Pretty good stuff if you're a single, sort of itinerant, construction worker looking for somewhere to sleep whilst you rebuild the earthquake and fire ravaged San Francisco. Cheap, fits the bill and better than a washing line. But in 2019?

Our guide asked us to guess what the rent is for one of these SROs. The usual to-and-fro banter ensued concluding with a shocked silence when he said; "$700-800 a month." If you want a room with a private bathroom, it's over $1000. It really is an obscene amount of money to rent a room in a boarding house. Yet this is the consequence of policies that prevent new high rise development, constrain the development boundaries of the city and provide a myriad of excuses and justifications for stopping or slowing new housing development. Unless - as our guide pointed out - you're rich enough to afford to pay the $7,500 monthly rent in a new development near the (splendid but ever-so-slightly pastiche) San Francisco City Hall.

There are a pile of reasons why the rent's so high in San Francisco but most of them are down to the combination of creating thousands of new, exciting and well-paid jobs but not building the thousands of homes needed to house the people who're taking up those exciting and well-paid jobs. This is why folk in Chinatown are complaining about the lack of housing, why there's twice as many homeless than in Chicago despite San Francisco being a third of the Windy City's size, and why folk in the Mission were stoning buses taking Google employees to work.

Just witness the madness of trying to get a launderette listed as a historical landmark just to stop a housing development!

The first hurdle came when the Planning Commission ordered a detailed historical review, based on a claim that various community groups had offices on the property in the 1970s and 80s, so the site might qualify for preservation. The resulting 137-page study cost Tillman $23,000 and delayed him an additional four months. It found that the laundry didn't merit landmark status.

But Tillman's project was still far from being approved. City law says that any individual or group, no matter where they live, can pay a $617 fee to appeal a decision by the Planning Commission. In this case, the challenge came from an organization called Calle 24, which declined Reason's interview request.

Calle 24 is one of several neighborhood groups determined to stop gentrification in the Mission, a neighborhood that's home to a working-class...

I'm not sure whether Tillman has got to build his apartment block yet but it beggar's belief that, in a city with an acute housing shortage, it can take best part of a decade to get permission to build some of those much-needed homes. When I talk of the stupidity of planning, this is what I'm thinking of - an endless parade of hoops and jumps that must be negotiated just to start digging the foundations for a development.

The city responds to its housing problems with a veritable first aid kit - rent controls, ordinances on building standards, grand affordable housing strategies and much else besides. Except, of course, for the thing that really would make a difference - allowing more dense development in San Francisco suburbs and using the city's economics and political clout to get more land released for housing in the Bay Area generally.

San Francisco is a particularly egregious example and, in its defence, is constrained by its geography - being stuck on a peninsula limits the scope for development. But the same issues - rents soaring, lack of development and lots of supposed solutions that don't actually face up to the supply problem - can be seen right across the world: New York, London, Madrid, Barcelona, Edinburgh, Auckland, Sydney, city after city where urban growth is bounded and reasons not to develop outnumber reasons to let people build. And in all of these places the result is high prices, rising rents, overcrowding and dissatisfaction with city and national authorities response to the problems.

If your policies for housing in a growing city don't include making more land available, allowing higher buildings and apartments in suburbs and ending daft zoning restrictions then you are failing - it shouldn't take a national government, as has happened in New Zealand and is happening in the UK and US, to tell local places that they're strangling their success with over-restrictive green belts, urban growth boundaries and that parade of reasons - environmental, heritage, landscape, bats, shadows, chimneys - not to develop. None of this will suddenly make these cities cheap places to live, the cost of success has always been higher rents, but it will start to make the liveable again.

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