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Image 1 of / 42 Caption Close Image 2 of 42 A history of new construction in SF. Data via Paragon Real Estate. A history of new construction in SF. Data via Paragon Real Estate. Image 3 of 42 Condos- ever more present. Data via Paragon Real Estate. Condos- ever more present. Data via Paragon Real Estate. Image 4 of 42 Affordability in SF-- way down. Data via Paragon Real Estate. Affordability in SF-- way down. Data via Paragon Real Estate. Image 5 of 42 Image 6 of 42 Typical new luxury unit at 72 Townsend. This penthouse lists for $3,549,000. Source: RMLS Typical new luxury unit at 72 Townsend. This penthouse lists for $3,549,000. Source: RMLS Image 7 of 42 The Townsend building offers tennis courts. Source: RMLS The Townsend building offers tennis courts. Source: RMLS Image 8 of 42 Swanky lobbies are a must, and the Townsend property has one. Source: RMLS Swanky lobbies are a must, and the Townsend property has one. Source: RMLS Image 9 of 42 Inside the penthouse. Source: RMLS Inside the penthouse. Source: RMLS Image 10 of 42 Image 11 of 42 Bed with a city view at Townsend. Source: RMLS Bed with a city view at Townsend. Source: RMLS Image 12 of 42 Decks are ubiquitous in lux condo buildings: this one's at Townsend. Source: RMLS Decks are ubiquitous in lux condo buildings: this one's at Townsend. Source: RMLS Image 13 of 42 Townsend gym. Source: RMLS Townsend gym. Source: RMLS Image 14 of 42 Lumina Towers, where owning a condo includes Audi access, among other amenities. Photo: Lumina SF.com Lumina Towers, where owning a condo includes Audi access, among other amenities. Photo: Lumina SF.com Image 15 of 42 Image 16 of 42 Summit 800 is yet another luxe condo complex in SF- this one in Lake Merced. Photo: Summit 800.com Summit 800 is yet another luxe condo complex in SF- this one in Lake Merced. Photo: Summit 800.com Image 17 of 42 399 Freemont is another new condo building in SF. Photo: UDR.com 399 Freemont is another new condo building in SF. Photo: UDR.com Image 18 of 42 The Madrone luxury complex in Mission Bay sold out rapidly. Photo: SF Gate The Madrone luxury complex in Mission Bay sold out rapidly. Photo: SF Gate Image 19 of 42 Single family homes do sometimes get build. 195 Brewster St. as built in 2016. Source: MLS via Redfin Single family homes do sometimes get build. 195 Brewster St. as built in 2016. Source: MLS via Redfin Image 20 of 42 Image 21 of 42 This SFH home lists for $2.495. It's a 3 bed, 3 bath This SFH home lists for $2.495. It's a 3 bed, 3 bath Image 22 of 42 New home, new everything. Source: MLS via Redfin New home, new everything. Source: MLS via Redfin Image 23 of 42 Brewster's deck. Source: MLS via Redfin Brewster's deck. Source: MLS via Redfin Image 24 of 42 It's official: Seattle is doing a better job with building. Source: Redfin.com It's official: Seattle is doing a better job with building. Source: Redfin.com Image 25 of 42 Image 26 of 42 In Seattle, find this SFH, built in 2016, at 320 NE 56th St. Source: MLS via Redfin In Seattle, find this SFH, built in 2016, at 320 NE 56th St. Source: MLS via Redfin Image 27 of 42 The Seattle home offers 4 beds, 3 baths at $1.250M. The Seattle home offers 4 beds, 3 baths at $1.250M. Image 28 of 42 Seattle kitchen. Source: MLS via Redfin Seattle kitchen. Source: MLS via Redfin Image 29 of 42 Seattle kitchen, 2. Source: MLS via Redfin Seattle kitchen, 2. Source: MLS via Redfin Image 30 of 42 Image 31 of 42 Seattle bed. Source: MLS via Redfin Seattle bed. Source: MLS via Redfin Image 32 of 42 Another Seattle SFH. Another Seattle SFH. Image 33 of 42 Also built in 2016, this Seattle SFH lat 2819 35th Ave., W lists for $1.450M. Source: MLS via Redfin Also built in 2016, this Seattle SFH lat 2819 35th Ave., W lists for $1.450M. Source: MLS via Redfin Image 34 of 42 The Seattle home on 35th Ave is a 5 bed/2.5 bath. Source: MLS via Redfin The Seattle home on 35th Ave is a 5 bed/2.5 bath. Source: MLS via Redfin Image 35 of 42 Image 36 of 42 Kitchen in 35th Ave. home Source: MLS via Redfin Kitchen in 35th Ave. home Source: MLS via Redfin Image 37 of 42 Seattle new construction also includes condos and townhouses. This one at 3027 Beacon Ave. is $600K. Source: MLS via Redfin Seattle new construction also includes condos and townhouses. This one at 3027 Beacon Ave. is $600K. Source: MLS via Redfin Image 38 of 42 The Beacon townhouse is 3 bed and 1.75 baths. Source: MLS via Redfin The Beacon townhouse is 3 bed and 1.75 baths. Source: MLS via Redfin Image 39 of 42 Beacon living room. Source: MLS via Redfin Beacon living room. Source: MLS via Redfin Image 40 of 42 Image 41 of 42 Beacon bedroom. Source: MLS via Redfin Beacon bedroom. Source: MLS via Redfin Image 42 of 42 Plenty of luxury condo construction in SF, and not much else 1 / 42 Back to Gallery

Using their own data as well as that compiled for the San Francisco Planning Department’s 75-page 2015 Housing Inventory report (released on May 27, 2016), Paragon Real Estate recently released its San Francisco Housing Development Report. This report is in response to the recent uptick in new construction in the city. “The new-housing landscape in San Francisco is in constant flux: new projects, developer plan changes, city plan changes, and shifts in economic and political realities. The basic fact is that the city, after its recent 2008-2012 new-construction slump, is now experiencing a huge building boom.”

Almost exclusively, that construction renders as multi-unit buildings and luxury condos. This type of housing and its price point has not done much to make more even San Francisco’s imbalance of supply and demand– largely because the new supply is mainly of luxury condo units aren’t affordable to many people, nor large enough to serve as single-family home alternatives.

Development in SF: “Not for the weak of heart”

Paragon writes:

The politics of new home development in San Francisco are not for the weak of heart. There are vociferous disagreements between neighborhood and homeowner associations, developers, affordable housing advocates, tenant’s rights groups, business groups, and pro-, slow- or no-growth advocates regarding how it should best proceed (or not proceed). The battles are non-stop in every political or legal venue available.

These battles, as well as the city’s limited space overall, explain why new construction is never as fast or as common as it might be in larger cities or those with a more favorable attitude toward development. Here when construction is proposed, it must then go through many steps:

The process of application and review, public hearings (and sometimes ballot proposals), revisions, entitlement, permitting, construction, inspection and completion is complex and lengthy. Housing units are being planned and built, and existing units are being altered and removed. And there are many housing types: rental or sale units, market rate or affordable, social-project housing or luxury condominiums.

The charts above, as well as the example of a typical new construction luxury condo (72 Townsend St #PH901),we find on the market today in SF illustrate the dearth of affordable new construction in the city. The number of “affordable” or “below market” rate homes of any kind have been less and less popular among developers (unsurprisingly). In fact, the number of affordable homes built in 2015 was among the lowest on record, with only 2011 showing fewer. And also in 2015, no affordable homes for seniors were added to the market, a trend also not seen in the city’s history except in 2011 and 2012, when the residual effects of the recession explain a malaise in construction overall. There is also a noticeable absence of new single-family home construction, a trend that perhaps makes sense given the city’s need for dense housing. But again, it doesn’t bode well for families hoping to find single-family home buying less competitive in the near future.

Development boom

The median home price in San Francisco ($1.134 million) reflects a robust market, despite recent data showing an ebb in the rising tide of price inflation. That, together with a recent and sizable immigration of well paid, mostly young and single or childless new residents, explains the focus on and popularity of luxury condos. These units offer amenities like pools, tennis courts, roof decks, community theaters, access to loaner cars (you can borrow an Audi if you live in the Lumina, for example), music practice rooms, on-site yoga and massage, and much, much more.

Some people might argue that access to Audis and yoga classes won’t solve San Francisco’s housing problems. But for 2015 at least, that argument fell on deaf ears.

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert