In my opinion, the primary driver is the astronomical cost of housing in the SF bay area (which is 3x the national average), which drives up the cost of all labor. Public transit is infrastructure heavy, very labor intensive, and the high cost of labor makes it very expensive.
In the bay, low-skilled / manual laborers spend >50% of their income on housing. Many can't afford to live here, so they demand higher wages or leave, which drives up the price of labor even further.
If sufficient housing were built and the Bay Area had the same housing prices as the rest of the US, then 1) the supply of labor would go up 2) wages could fall by 30-40% without a quality of life decrease. Businesses could reduce their labor costs by 20%, which would improve the QoL of everyone in the area, including manual laborers. When local businesses cut costs, then everything costs less (food, housing, transport), and QoL goes up.
Then run this process iteratively and you will see massive reductions in prices everywhere, the cost of everything will go down by 30%+ percent.
For the case of BART, they spend ~$800 million / year on labor, so reducing cost here has the highest RoI. They would save hundreds of millions per year.
alt Hacker News
In my opinion, the primary driver is the astronomical cost of housing in the SF bay area (which is 3x the national average), which drives up the cost of all labor. Public transit is infrastructure heavy, very labor intensive, and the high cost of labor makes it very expensive.
In the bay, low-skilled / manual laborers spend >50% of their income on housing. Many can't afford to live here, so they demand higher wages or leave, which drives up the price of labor even further.
If sufficient housing were built and the Bay Area had the same housing prices as the rest of the US, then 1) the supply of labor would go up 2) wages could fall by 30-40% without a quality of life decrease. Businesses could reduce their labor costs by 20%, which would improve the QoL of everyone in the area, including manual laborers. When local businesses cut costs, then everything costs less (food, housing, transport), and QoL goes up.
Then run this process iteratively and you will see massive reductions in prices everywhere, the cost of everything will go down by 30%+ percent.
For the case of BART, they spend ~$800 million / year on labor, so reducing cost here has the highest RoI. They would save hundreds of millions per year.