The End Of San Francisco's High-Rise Housing Boom

A prominent developer predicts that all hi-rise housing will cease in the San Francisco due to the credit crisis. The result, says an urban think tank director, will be more sprawl development in the Bay Area as it presents the least financial risk.

1 minute read

April 6, 2009, 6:00 AM PDT

By Irvin Dawid


"Michael Covarrubias, chief executive officer of San Francisco development firm TMG Partners, said that he doubted he would witness another residential skyscraper built in San Francisco.

Covarrubias made his comments during a real estate discussion sponsored by the San Francisco Housing Action Coalition. In an interview, he explained that most of the residential towers erected in the city during the boom were financed by multimillion dollar loans in which banks took on 80 percent of the risk.

With those institutions foreclosing in rising numbers and swallowing steep losses, few will accept such lopsided ratios again, he said.

It's not just skyscrapers that are at risk, but mid-sized condominium projects as well, said Gabriel Metcalf, executive director of the San Francisco Planning and Urban Research Association. Once developers begin construction on condos, they and their financers are on the hook for the entire structure, he said. In contrast, builders can tilt up single-family homes one at a time, drawing down their loan in increments as the market dictates."

"My greatest fear is that the fallout from the financial collapse will be that sprawl development becomes even more attractive," Metcalf said.

Thursday, April 2, 2009 in San Francisco Chronicle

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

King County Supportive Housing Program Offers Hope for Unhoused Residents

The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

July 11 - Real Change

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

July 11 - Shelterforce Magazine

Green bike share bikes parked in a row on a commercial street with outdoor dining and greenery.

Making Shared Micromobility More Inclusive

Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.

July 11 - Cities Today