It’s a chart that almost perfectly predicts the San Francisco housing market using only three variables:
- The number of jobs located in San Francisco County.
- The number of places in San Francisco County for people to live.
- The total amount of money that is paid to everyone who works jobs in San Francisco County.
It’s all summarized in the formula at the top of the chart. If you gave me values for (1), (2) and (3) above, then I could predict to you with startling accuracy how much the median two-bedroom apartment in San Francisco will cost to rent in that situation.
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