San Francisco has plummeted in the rankings of America's best cities, as rising costs of living, rampant crime, homelessness and business exodus take a toll.
The once-shining City by the Bay has fallen from 27th place last year to 126th place. Latest research from the Milken Instituteevaluates metropolitan areas across the country.
Precipitous fall from glory comes after San Francisco ranks #1 as of 2020 — The year when the struggle due to the new coronavirus began.
The Milken Institute's annual report rates the best cities based on metrics such as job and wage growth, affordable housing, and economic equality.
Topping the list was Raleigh, North Carolina, followed by Ogden, Utah, and Salt Lake City. Huntsville, Alabama, and Colorado Springs, Colorado rounded out the top five.
Since 2020, several major companies have moved their headquarters from the San Francisco Bay Area to states such as Texas and Colorado, including X, Oracle, Tesla, Hewlett-Packard, Charles Schwab, and Palantir. The companies cite California's high costs and regulatory challenges, as well as other states' more business-friendly environments.
This trend reflects broader changes in the Bay Area's commercial real estate and job markets as businesses seek lower taxes, lower operating costs and improved economic conditions.
Since the pandemic, the Bay Area has also faced significant crime-related challenges.
Homicide cases are on the rise in Oakland, with 114 reported in 2023, the fourth year in a row there have been more than 100 homicides.
Meanwhile, in the wake of a wave of brazen shoplifting, California Governor Gavin Newsom signed a bill in August aimed at combating organized retail crime.
The San Francisco Police Department has deployed high-tech drones with surveillance capabilities to enhance its crime-fighting efforts, resulting in numerous arrests and reduced response times.
San Francisco also consistently ranks as the most expensive city in the United States, along with New York, San Jose, California, and Honolulu.
San Francisco's deteriorating quality of life also has political implications.
In the Nov. 5 mayoral election, billionaire philanthropist and Levi Strauss heir Daniel Lurie defeated incumbent mayor London Breed with about 56% of the vote to Breed's 44%. It broke.
Lurie, founder of the nonprofit Tipping Point Community, is the first political outsider to be elected mayor of San Francisco since 1911.
His campaign focused on issues of crime, homelessness and housing affordability.
During his campaign, Lurie promised to prioritize public safety by opening 1,500 shelters and increasing police staffing within his first six months in office.
