How much does San Francisco spend on the homeless: the fabulous amount outraged citizens - ForumDaily
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How much San Francisco spends on the homeless: the fabulous amount outraged citizens

A recent plan to provide tiny homes for San Francisco's homeless has left city residents furious over the cost of the project, reports Yahoo.

Homeless tents line Main Street in San Francisco's financial district during shelter in place order. Tents are surrounded by modern skyscrapers in an affluent area of ​​the city.


America's cities are struggling to provide affordable housing for homeless people amid high interest rates and little real estate available. In which US cities do the most homeless people live, read our material.

San Francisco used various methods to solve the problem of homelessness. The city recently decided to move the homeless into mini-homes.

Each unit will reportedly cost $113 to build. Considering that the average home in San Francisco costs nearly $000 million, the $1 price tag for a mini-home seems in line with the city's notoriously expensive real estate market.

Why are residents outraged?

First, it's much higher than neighboring cities like Oakland and San Jose pay to build comparable apartments. Second, the program is funded by taxpayers.

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In addition, the city's program to manage these apartments costs approximately $2,9 million per year. The mini-homes will be demolished in a few years to make way for a permanent affordable housing complex in San Francisco's Mission District. Many San Franciscans question the wisdom of spending millions of dollars to build affordable housing and then tear it down to replace it with another affordable housing development.

To make matters worse, most San Franciscans struggle to cope with the city's notoriously high cost of living. According to, the average rent in San Francisco is $2800 per month. This is almost double the national average ($1514 per month). To make matters worse, $2800 a month gets you a basic apartment in a basic neighborhood. Luxury housing costs more than $5000 per month.

Tenants are considered rent burdened if their monthly rent exceeds 30% of their income. This means that San Franciscans must earn about $100 a year just to stay afloat. Until recently, an income of $000 a year was considered an important step towards economic freedom. These are now the minimum requirements for living in many major American cities.

You may be interested in: top New York news, stories of our immigrants, and helpful tips about life in the Big Apple - read all this on ForumDaily New York.

While San Francisco's tech boom has created many millionaires, not everyone in the city works in the sector. Most school teachers, social workers and food service workers in San Francisco earn far less than $100 a year. No city can function without the people in these positions.

What if you buy a house?

City residents face even more challenges when it comes to buying a home in San Francisco. A 20% down payment on a $1 million home is $200. Saving that much money while paying $000 a month in rent is difficult. With mortgage rates around 2800%, interest on an $7 loan is $800 per year. Add in the loan principal, property taxes and insurance, and the monthly amount is about $000.

While homelessness is a problem that needs to be addressed, ordinary San Franciscans are also in dire straits. It's natural to wonder when the city will spend millions of dollars to help them too.

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