San Francisco’s future house hunters could be in luck. Developers are planning to build thousands of new residences in the city, according to a report from San Francisco-based Paragon Real Estate Group. Here are a few of the report's highlights: • As of Sept. 30th, there were roughly 59,000 housing units slated for construction in the next five to six years. These residences include luxury condominiums, rental apartments and a variety of affordable housing. • Right now, there are roughly 382,000 residential units in San Francisco. Of these units, 3,500 were built in 2014. • Most of the new residences are planned for the Market Street corridor, the Van Ness corridor above Market Street, and in the districts southeast of Market Street. • The report suggests the city’s inadequate housing supply has prompted these projects. Construction has lagged the city’s population for decades, creating an opportunity for developers to take advantage of high demand in what is already a high-priced market. • New condominium residences often sell for more than $1,250 per square foot. A 500-square-foot studio can rent for up to $3,500 per month. The report points to a variety of factors, including economic, political and environmental events that can delay or halt construction entirely. The bottom line: Just because a development is in the works doesn’t mean it will be finished on schedule. Paragon based its analysis on newly released data from the San Francisco Planning Department. Read the full report here.
Developers are planning to build about 59,000 residences in San Francisco in the next five to six years.
Paragon Real EstateRelated: Is a Buyer's Market Emerging in San Francisco? Write to Gina Faridniya at gina.faridniya@dowjones.com