It has been undergoing dramatic changes in the last 10 years. One can't recognize many areas if he hasn't visited there for some years. Many people have been relocating from the City to Oakland and Berkeley. For example, check the historical rents and appartment/condo/SFH prices around Lake Merritt.
Gentrification is a controversial topic. It, however, is unreisistable. Starting with several good neighborhoods, it has been transforming the surrounding areas in a faster and faster pace.
Of course, some bad neighborhoods will continue to be horrible for a long time, especially if they are deep inside and are far away from the gentrification centers. But if you are interested in real estate investment, the returns of the neighborhoods at the edges of gentrification could be big.
