Even with apartment rents near record highs, rising construction costs and city fees are slowing down housing development around the Bay Area. In San Francisco, 4,500 new units were completed in 2017, down 14 percent for the year. Completions are expected to fall further based on the pipeline.
. . . Developers are grappling with construction costs that have risen by 10 percent a year by some estimates, largely in part because of a shortage of labor. San Francisco has the second-highest development costs for all sectors in the world at $330 per square foot, behind only New York, according to a study last year by Turner and Townsend, a construction consultant.
The price of a building one apartment in San Francisco has reached $700,000, including upwards of $100,000 per unit in fees.View Article