San Francisco Home Construction Expected to Slump This Year
Analysts say home building will slow down considerably in San Francisco in 2019 because of rising construction costs, fees, and interest rates, along with a downturn in the market, reports J.K. Dineen. Affordable housing requirements for new developments have also increased in recent years.
As a result, developers have much less incentive to take on new construction projects. In many cases, they are looking to unload projects that have been approved but where construction has not started.
New units that have been under construction will come on the market this year, and the city anticipates 4,700 units will be completed. The majority of these will be rental units, with significantly fewer condos, only about 300, hitting the market as compared to past years, notes Dineen. In addition, buyers appear most interested in high-end, luxury buildings and neighborhoods where there is typically less development.