California’s tech Mecca saw largest drop in median income during pandemic as the wealthy fled cities
San Francisco's homelessness and crime problems are only rising
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San Francisco saw the single largest drop in median income of any major city in the country during the COVID-19 pandemic as wealthy tech workers fled the city in droves, according to census data.
The U.S. Census Bureau compiled data on the nation's top 25 most populous metropolitan areas from 2019 to 2021 to help determine the impact of the pandemic. Median household income for the area of San Francisco, Berkeley and Oakland fell 4.6% from $121,551 in 2019 to $116,005 in 2021. New York City followed closely, however, with a drop of 4.2%.
San Francisco also saw a major spike in homelessness throughout the pandemic, further contributing to the exodus of workers and companies.
The City's Castro Merchants Association, which represents roughly 125 businesses, sent a letter to the city government in August, threatening to withhold tax payments if the city doesn't get the homelessness issue under control.
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The Golden Gate Bridge in Francisco. (iStock / iStock)
A homeless camp next to a freeway entrance in San Francisco, California (iStock)
The city's rising crime rate is also contributing to struggles for businesses in the area. Hamid Moghadam, the CEO of the San Francisco-based real estate company Prologis, sent another letter to the city demanding action after he was robbed outside his home in broad daylight.
"It is now difficult for me to tell potential candidates that they should move to San Francisco," he wrote. "We pay some of the highest taxes, local and state, in the nation, yet we have no sense of security.
Homeless tents line city streets in San Francisco. Homeless community creates a camp with all their suitcases, tents, sleeping bags and precious belongings. (iStock)
"Protecting public safety should be the government's top priority — that is the foundation of a successful city. Only in a community where people feel that they and their families are safe will jobs and culture flourish."
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San Francisco's schools haven't escaped the fallout of the pandemic either, with high schools plummeting in national rankings after the city voted to abolish merit-based admissions. The city's premier Lowell High School fell out of the top 100 high schools in the country this year.
Aislinn Murphy contributed to this report.