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San Francisco Home Prices Are Highest In Nation And Getting Higher Fast (PHOTOS)

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This city's too popular, no one lives here anymore.
This city's too popular, no one lives here anymore.

It isn't exactly a secret that San Francisco is an expensive place to live.

According to Yahoo! Homes, not only does San Francisco already have the highest median home price of any major American metro area, but home prices in the city are increasing at a faster rate than any other large urban area in the country.

From April to May of this year, the median price of buying a home in San Francisco increased 3.9 percent to $705,000.

(SCROLL DOWN FOR PHOTOS)

"The city is split into a number of different neighborhoods, each one more vibrant and eclectic than the next," wrote Yahoo! Homes. "From the famous 'Painted Ladies' that line the streets to world-class dining and nightlife, San Francisco has something for any homeowner who has money to burn."

Let's say, hypothetically, you're not one of those Internet millionaires all the kids are talking about these days. In that case, buying a home in the city is likely out of your price range and, like most San Franciscans, you'll just find an apartment to rent.

Oh, right. The San Francisco apartment rental market is also the most expensive in the country.

What about affordable housing? Maybe you could apply for a government subsidy and get some below market rate housing.

Oh, right. Federal dollars for housing have shrunk dramatically, the end of redevelopment has eliminated most of the city's affordable housing budget, waiting lists for government housing programs can stretch over a decade, virtually no new affordable housing has been built in the state of California in over decade and the recession's overwhelming flood of foreclosures has spiked the demand for subsidized housing.

Maybe the city could just build a bunch of new market rate houses, which would increase supply, reduce buyer competition and put downward pressure on prices?

Oh, right. To even come close to meeting demand, San Francisco would have to add tens of thousands of new units within the next couple decades. That's virtually impossible in a city where development is slow and regulations are tight.

So let's all just move to Oakland. Things are cheaper in the East Bay.

Oh, right. Rents in the East Bay have been increasing almost as fast as they have in San Francisco. It turns out then when everyone gets the same idea to move to the East Bay because things are cheaper there, it kind of defeats the purpose of moving there in the first place.

The San Francisco Chronicle manages to put a positive spin on the San Francisco's every-growing affordability, writing that "this news doesn’t bode well of course for hopeful homebuyers but is probably a welcome update to underwater homeowners and those looking to sell."

Our own silver lining: maybe San Francisco is insanely expensive. But at least we have one of the best new Jewish delis in the country.

Anyway, have some real estate porn:

Also on The Huffington Post

San Francisco's Most Expensive Houses
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