Coming to Terms With the Bay Area's Housing 'Death Spiral'

Prospects for solving the Bay Area's severe housing shortage look far off. Action on the state level may be one way to approach this crippling collective action problem.

1 minute read

September 12, 2017, 7:00 AM PDT

By Philip Rojc @PhilipRojc


San Francisco Houses

Jorg Hackemann / Shutterstock

Facing some of the nation's highest prices, the Bay Area has become ground zero for the housing crisis. SPUR president Gabriel Metcalf writes, "The problem was that we needed to figure out where all the newcomers could live without pushing existing residents out. And in this fundamental task of urban governance, we have failed terribly."

Tracing the problem's history, Metcalf defends his organization. "SPUR began sounding the alarm in the late 1970s. Following a citywide downzoning and the early signs of gentrification in some San Francisco neighborhoods, it was clear that the city was headed for a housing shortage."

Ideally, Metcalf writes, the Bay Area would build more housing "at all income levels." To get there, he cites putative policies that encourage density, make places more walkable, fund affordable housing, and defend residents from displacement. Quite a wish list, to be sure.

Metcalf acknowledges the issue's entrenched difficulty, calling the housing shortage a collective action problem with no easy local solution. He wants to see solutions that reach beyond the Bay Area. One example: a new state-level framework for housing approvals, "one that strengthens state housing targets for regional and local governments and makes infill housing easier to build, along with reforming the tax system by letting cities keep more of the residential property tax and rewarding cities that build densely enough in transit-oriented locations."

Tuesday, August 29, 2017 in SPUR

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

September 23, 2026 - Zachary Whalen

Passengers board an Amtrak train under a cloudy sky.

Amtrak, CN end decades-long dispute with eight-year agreement

The new operating agreement establishes an updated framework for the companies to work together, including processes to resolve disputes.

September 18, 2026 - Mass Transit

The Gross Reservoir, a large body of water surrounded by trees and mountains.

Judges permit Denver to divert 77,000 acre feet from the Colorado River for reservoir expansion

Overuse and climate change have caused the Colorado River’s water levels to plummet.

September 18, 2026 - Inside Climate News

A rendering of the Beltline light rail, which goes through a forested area. People walk on a path next to it.

Atlanta City Council unanimously backs $3.5 billion Beltline light rail project

The resolution was drafted after Atlanta Mayor Andre Dickens pulled support for the Atlanta Streetcar extension last year.

September 24 - Construction Review

A person boards a SEPTA bus.

SEPTA to bring nearby frequent transit to over 1 million new riders as part of decade-long plan

The agency's Accelerate plan will also bring frequent transit to twice the amount of jobs that are currently located near it.

September 24 - Mass Transit

Five people squat by a tree in NYC, helping to care for it.

NYC plants over 18,000 trees, the most new foliage in a decade

Many of the trees were planted in communities vulnerable to extreme heat.

September 24 - AM NY

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.

Senior Planner

City of Thousand Oaks

Community Development Director

City of Wisconsin Rapids

Professor of Urban Planning

Harvard University Graduate School of Design