In this San Francisco Business Times article, Blanca Torres reports on current leasing rates for new apartments in San Francisco. She finds that a record number of units were delivered during the last 18 months (4,000 units delivered in 2016 alone) and, as a result, leasing rates are slightly slower than previous years (buildings are averaging 16 new leases per month, compared with averages of 24 units per month between 2013 and 2015). BUILD’s Lou Vasquez is quoted in the article pointing out that while it’s slower than past years, units are still “going to be absorbed very quickly.”
The article also points out that the San Francisco housing market remains “chronically undersupplied” and that “Bay Area housing production pales in comparison to other metropolitan areas”. With conditions that continue to make it difficult to build new homes, the city will continue to feel the pressure of housing shortages.
“BUILD has leased about half of 650 Indiana St. (O&M), a 116-unit building in the Dogpatch, since May. That’s about 15 units per month — not great, but not bad — said Lou Vasquez, co-founder of BUILD.”