flexiblefullpage - default
Currently Reading

What's the Holdup in the Bay Area?

Advertisement
billboard - default

What's the Holdup in the Bay Area?


August 30, 2018
Bird's eye view from lightpost
Photo: Unsplash/Edgar Chaparro

Developers and other local industry professionals tell the San Francisco Chronicle that many approved housing projects are stalling due to rising construction costs, including fees. 

Bill Witte, president of developer Related California, explains, “Most entitled projects in the city are for sale right now — either publicly or privately ... We’re at that point in the cycle.” The Chronicle reports that there are 6,750 units currently under construction in San Francisco, above the historic average and 1,000 more than this time last year, but there are an additional 15,000 approved, permitted units that have not yet started construction. 

Developer Eric Tao of AGI, which has completed about 1,200 units in SoMa, the Mission and Dogpatch over the past decade, said construction cost increases of 10 to 15 percent annually over the past five years is mostly to blame for the delays. He said his company is re-evaluating aspects of 1270 Mission St.’s design, hoping to reduce costs enough to make it pencil out. “We are trying to make it work — it’s close but not quite there,” Tao said. “When we got 1270 Mission approved, if everything else had been frozen in time, we would be building right now. But construction costs went up. Time is not your friend when you are a developer.”

Read more

Advertisement
leaderboard2 - default

Related Stories

Market Data + Trends

Data Show New-Home Construction Starts Slowed at the End of 2023

Despite falling mortgage rates and a continuing shortage of housing inventory, the annual pace of new-home construction slowed in December

Housing Markets

Top 10 Metros for New Homes in 2024

Punta Gorda, Fla., and Myrtle Beach, S.C., top the list of places where new-home construction is booming

New-Construction Projects

US Housing Starts See Unexpected Surge in November

Census Bureau data show new-home construction was up 14.8% in November, suggesting the housing crunch may be easing

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.