New new applications in the city of San Francisco have all but stalled in 2022. That’s the headline coming out of the city’s planning office, according to a report in the S.F. Chronicle.
Since the beginning of 2022, just three projects totaling 62 units have been filed.
Construction and development experts say the low interest reflects the reality of high hard costs coupled with inflation and rising interest rates. City officials, however, told the Chronicle that planners are expecting several large projects to be submitted in the next few months.
Compared to one year ago, the city has seen applications hit a new low. Even during the thick of the pandemic, seven project applications totaling 891 units were processed by city planners.
Experts note that if the number of new applications doesn’t increase in the coming months, San Francisco could feel the slowdown in housing availability beginning in 2025.