"Overall, our observations show that City's tax and fee incentives have not successfully reversed the decline in building activity since 2022 and have not pushed building activity to return to 2019 levels."
"Construction costs increased by 53.5 percent between January 2019 and December 2025. During the same period, interest rates rose from 2.7 percent to 4.1 percent."
"New housing will not bring down prices, because the rents will have to be a lot higher before developers can promise investors the return that they demand."
"Based on the analysis presented in this report, we do not conclude that the City's fee reduction legislation was sufficient to push a substantial number of housing projects towards feasibility."
San Francisco's reduction of affordable housing requirements and impact fees has failed to stimulate building activity. Despite efforts to revive stalled projects, the city's incentives have not reversed the decline in construction since 2022. Rising construction costs and interest rates have hindered developers' ability to generate sufficient returns. Consequently, the fee reductions have not led to a measurable increase in housing production, leaving the city with little visible return on its financial concessions to developers.
Read at 48 hills
Unable to calculate read time
Collection
[
|
...
]