San Francisco's population is bouncing back

OAKLAND, Calif. - The mass migration away from California seems to be abating as the post-pandemic period and the overall U.S. economy improves. 

Nowhere is that more welcome than in San Francisco. 

While it is undeniable that more people have left California than were born or moved into it, one surprising slice of a Census Bureau report shows troubled San Francisco's population is on the way up.

The U.S. Census Bureau reports that between July 2022 and 2023, San Francisco stopped bleeding residents. While San Francisco's gain was just a 1,200 resident increase, at 100 move-ins a month, it's a hopeful sign.

According to the Public Policy Institute of California, the pandemic allowed a lot of people to leave. "Part of what was drawing people out of San Francisco was the ability to work remotely and live someplace cheaper," said Eric McGhee, Policy Director of the PPIC.

On top of that, many San Franciscans died during the pandemic and the city's lower birth rate did not replace all of them. But now, the requirement for many to work in the office a few days a week has brought some people back.

Another factor: the explosion of Artificial Intelligence.

"You also have a kind of new jobs boom around the Bay Area, in general, because of A.I. That is drawing people back." said McGhee.

That brings in a lot of high income earners from other states and overseas.

"But, that also means that they have a lot of disposable income to spend on housing and that drives up their housing costs and also housing costs for everybody else and we are, in terms of college-educated young people, we're a net gainer" said McGhee.

That said, overall statewide, California lost a half million residents; slightly less than the population of Sacramento. Of the 58 counties, 16 actually gained up to 3% more in the population. Thirty-seven counties lost up to one-and-a-half percent of their populations. Five counties lost more than 3%.

"We are recovering as a state. Our population loss is slowing," said McGhee.

But, if we don't find a way to create more truly affordable housing, the comeback won't last for long.