The influx of people led to a severe housing shortage and sky-high prices for basic necessities. San Francisco also became a very lawless place, as there was no real government or law enforcement to speak of. This led to a lot of crime, and the city became known for its vice and corruption. Despite all of the hardships, the gold rush was an immensely important event in American history. It was the first time that people from all over the world came to California in large numbers, and it forever changed the state. San Francisco, in particular, would never be the same.