Part 6/10:
Another crucial metric in the conversation about housing affordability is the rental vacancy rate. Cities with low vacancy rates often correlate with higher rents, while those with higher vacancies tend to have more affordable prices. Surprisingly, San Francisco has maintained a relatively average vacancy rate despite its high rents, a trend that shifted post-COVID-19.
Additionally, the Wharton Residential Land Use Regulation Index highlights New York and San Francisco as having the strictest building regulations in the country. This discourages new developments and directly contributes to the stringency of housing supply, further complicating affordability measures.