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- 1. CITY SYNOPSIS: SAN FRANCISCO People moving to San Francisco ¨C the cultural, commercial, and financial center of Northern California?¨C join a rich tradition of pioneers, from the gold miners, to the counter- cultural movements of the 20th century and the venture capitalists of the Internet boom.1 This diversity and the city¡¯s inherent progress are likely to shape relocated employees¡¯ experiences of working in San Francisco. ABOUT SAN FRANCISCO FACTS >> Country: United States >> Population: 2.2 million >> Climate: Humid subtropical >> Industries: Oil and gas, renewable energy, aerospace, medical >> National languages: English (secondary:?Spanish) >> Nickname: Space City >> Dominant mode of transportation: Automobile (72-percent) The largest contributors to the city¡¯s economy are sectors in financial services, tourism, technology, and education. And a reminder of its role in the California Gold Rush, the city is still one of the largest centers of finance in the United States.2 San Francisco is renowned for a number of unique characteristics including its chilly summer fog, steep rolling hills, and eclectic mix of Victorian and modern architecture. Notable landmarks, including the Golden Gate Bridge, cable cars, and Chinatown, are just a few of its recognizable features. And the city growth and movement of more people toward San Francisco continues to increase, bringing scores of people to California for career opportunities in a variety of industries. ECONOMIC TRENDS San Francisco is a popular international tourist destination, and the industry itself has become the backbone of the San Francisco Bay Area economy. As a principal banking and finance center, the city features more than 30 international financial institutions, helping to rank San Francisco 15th in the top 20 global financial centers in the world. The city is home to the University of California San Francisco, which is entirely dedicated to graduate education in health and biomedical sciences, as well as the University of California, Hastings College of the Law, San Francisco State University, the City College of San Francisco and the University of San Francisco.3 The Bay Area¡¯s population has continued to increase due to consistent job creation. ¡°A big increase is happening in employment in the Bay Area and again particularly in Silicon Valley and the San Francisco area,¡± says Professor Jim Wilcox, a macroeconomist at the UC Berkeley Haas School of Business. At the center of social media and Internet commerce, San Francisco continues to bring technology jobs to the area, attracting people here from all over the nation and world.4 San Francisco has grown from 776,000 people in 2000 to 805,000 in 2010, and the area as a whole has grown from 6.7 million people in 2000 to 7.1 million in 2010, according to census data. Job creation, mostly in technology, has helped fuel the demand, with 33,400 jobs expected in 2015 and 45,700 created in 2014, according to data from real estate brokerage Marcus & Millichap.5 1 www.expatarrivals.com 2 Ibid. 3 www.forbes.com/places/ca/sanfrancisco 4 Tom Vacar. ¡°Rent prices continue to rise in Bay Area with healthy job?market.¡± KTVU, May 28, 2015. 5 Meredith Bauer. ¡°Why San Francisco¡¯s Thriving Economy Means Trouble for?the Middle Class.¡± The Street, May 13, 2015. Baker¡¯sDozen CustomerSatisfactionRatings 2015 Winner RELOCATION
- 2. San Francisco is also a hot spot for millennials. The city ranked fourth on?the Rent.com Best Cities for Post-Grads list released in April 2015. Rent.com cited the city¡¯s low unemployment rate and high job postings per?capita as factors behind its high ranking. While the city¡¯s issues lie in housing and cost of living, the pros in the job market pick up the slack. San Francisco¡¯s technology credentials and burgeoning job market have helped to land it at the top of Rent.com¡¯s Best Cities for Post-Grads list. What the city lacks in affordability, it makes up for in job opportunities and culture.6 SAN FRANCISCO HOUSING MARKET The least affordable aspect of living in San Francisco is the exorbitant cost of housing. Affordable housing is hard to come by. According to data from the National Association of Realtors, existing home sales prices increased nearly 36-percent in just two years, from $543,780 in 2012 to $737,600 ¨C the second highest average sales price in the U.S. ¨C in 2014.7 However, high home sales prices do have a benefit to rental property landlords. These rates have begun to spill over into the rental market. According to rental listing site Zumper.com, which tracks average market rents on a monthly basis, rental rates in San Francisco are the highest in the country. The average rent for a two-bedroom apartment in San Francisco is $4,650, which is at least $1,000 more than the number-two city (New York) and $2,000 more than the rest of the biggest cities in the country.8 This increase occurs in a city where rent prices shot up 13.5-percent in 2014. San Francisco has become increasingly unaffordable for many of its longtime residents and low-wage workers as an influx of Silicon Valley wealth floods the city. In fact, demand for affordable housing is so unmanageable in San Francisco that the city was just able to reopen its public housing waitlist last month for the first time in four years.9 Many transferred employees will find they spend half of their wages on rent, making purchasing a property a better value than renting. However, reports show that most moving to San Francisco are transient, and are unwilling to settle down and commit to a mortgage. Additionally, the majority of those who relocate to work in the tech industries of Silicon Valley are in many cases single and childless. The growing new-to-the-Bay-Area population has created a high demand for rental properties, which in turn has pushed up the prices for rental accommodations in San Francisco, especially in the heart of the city.10 COST OF LIVING The Golden Gate City is regularly ranked as one of the most expensive cities in the country. Cities in the U.S. have climbed dramatically in the cost of living ranking over the last several years due to the strengthening of the U.S. dollar against other major currencies. According to the Expatistan Cost of Living Index, San Francisco ranks at number seven globally, and third in the U.S., only behind New York City, NY and Washington D.C.11 According to the Council for Community and Economic Research, the total cost of living in San Francisco is 62.6-percent higher than the U.S. average?¨C and housing is nearly three times more expensive than in other U.S. cities.12 However, this shouldn¡¯t discourage employees asked to move to San Francisco. There are many things the city offers at bargain prices. For example, clothing and groceries are reasonably priced for those living in the city. This is largely because the Central Valley in California supplies the region with fresh, affordably priced fruit and vegetables, while meat is also reasonably priced. In addition, eating out at an average restaurant in San Francisco is very affordable, even when factoring in a tip. Alcohol is also affordable and available at most supermarkets and drug stores.13 Public transport is San Francisco is limited for people who don¡¯t live along the Bay Area Rapid Transit (BART) train line. However, fares on public transportation are average compared to other U.S. cities. Because of the limited nature of the city¡¯s transit system, it is common for residents to drive long distances to work each day, which potentially involves paying several bridge tolls in addition to fuel costs.14 See Figure 1 for a list of everyday items and prices in San Francisco, California. See Figure 2 to compare San Francisco¡¯s cost of living with Singapore. 6 Julie Balise. ¡°San Francisco is among the best cities for recent grads.¡± San?Francisco Gate, April 8, 2015. 7 Nick Wallace. ¡°What is the True Cost of Living in San Francisco?¡± Smart?Asset, May 5, 2015. 8 Nick Wallace. ¡°What is the True Cost of Living in San Francisco?¡± Smart Asset, May 5, 2015. 9 Lydia O¡¯Connor. ¡°America¡¯s Most Expensive City Just Got Even More Expensive.¡± Huffington Post, February 2, 2015. 10 www.expatarrivals.com 11 www.expatistan.com 12 Nick Wallace. ¡°What is the True Cost of Living in San Francisco?¡± Smart Asset, May 5, 2015. 13 www.expatarrivals.com 14 www.expatarrivals.com 15 www.numbeo.com. 16 Ibid. FIGURE 1: PRICE OF COMMON ITEMS IN?SAN?FRANCISCO, CALIFORNIA15* USD EUR GBP SGD Loaf of bread $3.64 3.32 € ?2.33 $5.01 Bottle of wine $15.00 13.69 € ?9.61 $20.63 One-way bus ticket $2.25 2.05 € ?1.44 $3.09 Pair of sport shoes $91.00 83.03 € ?58.32 $125.37 One-bedroom city apartment (monthly rent) $3,296 3,006.70 € ?2,112.35 $4,540.78 Imported beer at a restaurant $6.50 5.93 € ?4.17 $8.96 * Note: current currency conversions reported on August 3, 2015. FIGURE 2: COST OF LIVING IN SAN FRANCISCO COMPARED WITH SINGAPORE16 Consumer price index +19.89% Rent index +57.62% Groceries index +59.94% Restaurants index +75.01% Consumer price plus rent index +37.41% Local purchasing power +15.21%
- 3. FREE APPS TO HELP YOU NAVIGATE YOUR NEW CITY Yelp! ¨C Offering over 50 million reviews for businesses worldwide, easily search nearby restaurants, read?reviews, view local deals. OpenTable ¨C Read restaurant reviews from real diners, and make real-time reservations at restaurants anywhere ¨C anytime. Waze ¨C Join drivers who share real- time traffic and road information to save time and gas money, and improve daily commuting for all. Visa payWave ¨C Breeze through check- out faster and avoid fumbling for cash. World Customs and Cultures ¨C An at-a-glance reference, this app covers the discreet and not-so-discreet cultural differences a business traveler may encounter in 165 countries. Guidekick ¨C Navigate 3D maps of each San Francisco tourist destination and explore on your phone. Also get interesting facts and historical information on each spot. Splinster ¨C This global bike share app makes it easy to find a bike of any kind or size in San Francisco and in over 63?countries worldwide. SF Weekly ¨C The SF Weekly app is your guide to where to go and what to see in the Bay Area. Transit and Trails ¨C Locate trails and let?the app tell you how to get there, either by walking, biking, or driving. SF Arts Guide ¨C The SF Arts Guide is a continually updated app that contains more than a thousand events each month. GLOBAL EXPERTISE FOR SUCCESSFUL RELOCATIONS Graebel worldwide offices are staffed with global relocation industry experts who are ready to?help companies and their assignees on long- or short-term assignments in San Francisco ¨C or?anywhere on six continents. As the industry leader, Graebel proactively provides pre-departure to ongoing assistance, helping clients¡¯ employees remain productive throughout the assignment. For answers to questions concerning relocations to San Francisco and the Bay Area, contact Graebel today. Relocation Services Transformed on Six Continents Global Employee & Office Relocation, Move?Management & Workplace Services World Headquarters: USA 16346 Airport Circle | Aurora, CO 80011 USA +1.800.723.6683 | marcom@graebel.com EMEA Headquarters: Czech Republic Mal¨¦ n¨¢m st¨ª 459/11 110 00 Prague 1, Czech Republic +420.225.982.819 APAC Headquarters: Singapore 4 Shenton Way | SGX Centre 2, #29-01 Singapore, 068807 +65.6302.5111 The information contained in this document represents the current research of Graebel Companies, Inc. on the issues discussed as of the date of publication. This document is for informational purposes only and does not serve as an endorsement of products nor providers. Graebel cannot guarantee the accuracy of any information presented after the date of publication. ? 2015 Graebel Companies, Inc. All rights reserved. All trademarks are property of their respective owners. CITY SYNOPSIS: SAN FRANCISCO SAN FRANCISCO