When the most recent housing crash and recession hit back in 2008, new construction in San Francisco virtually ground to a halt. Now, with demand and the economy booming, the pace has picked back up and the city, already the second densest city in the country, is about to get even denser. Local agency Paragon Real Estate has analyzed the extensive Housing Inventory and Pipeline reports for the San Francisco Planning Department and found that as many as 50,000 new units could be on their way. There were only 4,200 units built between 2010 and 2013, but as of January 2014, 6,000 new units were under construction, 4,200 had received building permits and were in pre-construction and a massive 29,700 units has been approved but didn't yet have planning permits issued. Another 10,500 units were under planning review.
Back in 2011, with the effects of the recession still lingering, only 348 new units were built. That number rose to 2,330 in 2013, and the city has already added more housing this year to date than it did in all of last year. Most of the new housing built in recent years has been in the Downtown-Civic Center and SoMa/South Beach/Potrero Hills areas, but there is lots of housing coming to the city's less central areas. Big new projects in Hunters Point, Park Merced and Treasure Island account for 26,000 of the upcoming new housing units.
Construction will also continue to be primarily of new condo buildings. Over the past ten years, almost no new single-family homes have been built. With land supply limited, developers prefer to create higher-density projects. The average price of new condos has soared past $1,000 per square foot, providing a major incentive for developers to keep building.
San Francisco Housing Development Report [Paragon Real Estate]
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