Rent Pricing In California

A fire that killed at least 36 people in Oakland, California resurfaced the problem of rent pricing. Warehouses have served as an affordable home for many artists in the city, despite the risks that came with it. Oakland is home to lower-priced alternatives in many aspects in comparison to their neighbouring city of San Francisco. Their price advantages are no longer evident, and this is most clearly seen in their rental costs. Rent has increased by 70 per cent in the last five years, and this has pushed many desperate, low-income residents into unsafe housing. Unsafe housing in Oakland is often times illegal as well. When a legal unit does appear on the market, the price is unaffordable to many of the lower-income residents. Due to the constantly increasing costs of rent for legal units, the demand decreases. Meanwhile, the demand for more affordable units increases, despite the many downsides to it. This is shown in Figure 1 and Figure 2:

Shelter is a necessity for humans, thus it explains the inclination of many residents of Oakland to opt for illegal spaces and adapt to poorer living conditions. ‘Willing’ refers to the consumer’s desire to buy, whereas ‘able’ tries to see whether consumers are able to afford the good or service. Due to the high costs, some lower-income residents may be unwilling and unable to buy. On the other hand, some residents may be able to purchase, or in this scenario, rent out a legal housing space, but they are unwilling due to the high