Housing Pipeline Holds as Construction Rises in San Francisco
With new proposals having been submitted to the City for roughly the same number of residential units that finished construction in the second quarter of the year, the overall pipeline of apartments and condos under development in San Francisco is holding around 63,500 having peaked at 63,700 in the third quarter of 2016.
As we first noted last year, the year-over-year growth in the pipeline has been trending down since the fourth quarter of 2015. And the year-over-year gain of 204 units in the second quarter of 2017 is compared to a year-over-year gain of 8,725 units in the second quarter of 2016.
That being said, there are roughly 7,000 units of housing under construction across the city which should be ready for occupancy within the next year or two (including the remainder of Avalon’s 326-unit Dogpatch development at 800 Indiana Street, as pictured above), which is an increase of 26 percent from the 5,600 units under construction in the first quarter of the year.
In addition, there are now 11,150 net-new units of housing for which building permits have either been issued, approved or requested, and 31,500 units in projects that have already been approved but not yet permitted (which includes the majority of the 10,500 units by Candlestick, 7,800 units on Treasure Island and 5,680 units at Parkmerced, projects which have overall timelines measured in decades, not years).
And with proposals for another 13,800 units of housing under review by the City’s Planning Department, which is up from 13,300 the quarter before but versus 17,800 under review in the second quarter of 2016, San Francisco’s Housing Pipeline totals 63,500, including 10,600 “affordable” units which are to be offered at below market rates, according to our accounting of Planning’s database.
At the same time, the pace of new construction condo sales in San Francisco appears to be slowing down, at least one index suggests that new condo pricing continues to drop, and rents in the city are down as well. We’ll keep you posted and plugged-in.