The city and state are easing or rolling back other political priorities in some cases to increase the number of apartments
By Peter Grant
Dec. 4, 2023 9:00 pm ET
Real-estate developers are launching a series of residential projects in San Francisco, responding to new efforts by the state and city to create more housing in one of the country’s most expensive places to live.
In what would be the city’s most ambitious residential development in several years, local property developer Bayhill Ventures last month announced plans for a 71-story rental tower in San Francisco’s ailing financial district.
Elsewhere, 10 office-to-residential conversion plans have been submitted to the city in neighborhoods including the financial district. If completed, they would add more than 1,250 units to the city.
Property developers say the plans for new projects reflect government efforts to reduce costs and eliminate red tape for new construction and conversion of office buildings to apartments.
Apartment rents have been “clawing their way back” thanks to the growing number of San Francisco companies that are requiring employees to work out of their office at least a few days a week, said Sean Burton, chief executive of Los Angeles-based Cityview, a rental-apartment firm that owns two San Francisco properties.
But Burton pointed out that the San Francisco market hasn’t fully recovered. Out of Cityview’s 55 properties in Western states, the two in San Francisco are the only ones with rents that haven’t returned to or exceeded prepandemic levels, he said.