Austin KlarVanguard Properties · Lawyer Turned Real Estate Agent

San Francisco's Housing Crisis: What Went Wrong?

Name: San Francisco's Housing Crisis: What Went Wrong?
Uploaded: 2024-07-09T01:00:28+00:00
Duration: 56 s
Channel: Austin Klar
Description: In this solo commentary, Austin Klar explains that San Francisco has dramatically fallen short of its housing production goals, approving only 3,039…

9 Jul 2024 · 1 min

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In this solo commentary, Austin Klar explains that San Francisco has dramatically fallen short of its housing production goals, approving only 3,039 units in 2023 and 831 units so far in 2024—far below the pace required to deliver over 80,000 units in the next eight years. He introduces California Senate Bill 423, sponsored by Senator Scott Wiener, which will force the city to streamline approvals for code‑compliant projects when production targets are missed. Under SB 423, qualifying projects must be approved within six months, a sharp reduction from the current average of more than two years. Klar notes that the bill does not apply to large development agreements such as Pier 70 and Mission Rock, which are excluded, but most smaller projects will benefit. He concludes by questioning how effectively the accelerated timeline will jump‑start development and help alleviate the housing shortage, inviting viewers to follow him for more Bay Area real‑estate analysis.

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The city of San Francisco has failed to meet its housing production goals and will now be forced to streamline approvals for otherwise code-compliant projects. SB 423, a bill sponsored by Senator Scott Wiener, which quickens the approval timelines and eliminates appeals for certain projects in cities that are otherwise not meeting their production goals, is about to kick in in San Francisco because San Francisco only approved 3,039 units in 2023, and so far in 2024, 831 units, which is well short of the average needed to get the over 80,000 units we need over the next 8 years. Not all projects are going to be able to take advantage of the new rules. There are projects that are subject to development agreements between the developers and the city, like massive projects like Pier 70 and your Mission Rock that aren't going to be able to take advantage, but projects that are smaller than that, most of them are going to be able to take advantage of these new rules. These smaller projects will have to be approved within 6 months instead of the average over 2 years that it's been taking to get through the approval process. We'll see how much this really kickstarts development and paves the way for alleviating the city's housing shortage. Follow me for more Bay Area real estate.