Bisnow San Francisco Multifamily Forum Recap
October 13th, 2016 / San Francisco
The Bisnow San Francisco Multifamily Forum is where industry leaders gather to discuss the current situation in one of the nation’s most competitive markets. Paul Zeger recently sat on a panel that spoke to a crowd of 200. Here are some of the takeaways.
After years of being an incredibly hot market, sales in San Francisco have slowed as election jitters have caused potential buyers to hold on to discretionary income. Instead of driving 90 miles per hour, we’ve slowed down to 70 miles per hour, but it feels slow relative to 90. New inventory has normalized the market a bit. The rental market has more competition due to an increase in new deliveries. There is still a demand, but absorption has slowed and incentives are being used to compensate. But with interest rates so low, now is the time to build a meaningful supply of affordable housing with city, state and federal financing help. Affordable housing needs to be paid for by the whole city, not just new homebuyers who are paying market rate prices. Rising construction costs in the form of wages and material costs have also contributed to the affordability crisis in San Francisco.