In San Francisco Supply and Demand Dynamics Favor Condo Developers

The Registry

From the article:

High housing demand fueled by extraordinary job creation and low interest rates, combined with lagging construction and a precarious entitlement process, have put San Francisco condominium developers on a lucrative path.

“We see demand increasing rapidly because of all the economic growth in the Bay Area,” said Paul Zeger, president of San Francisco-based Polaris Pacific, a residential sales, marketing and research firm focused on the West Coast. “But we’re undersupplying the market, which means that over the long term in San Francisco, and in the Bay Area in general, you’re going to see housing values go up.”

It’s hard to argue with that premise considering the Bay Area’s economic engine. Employers in San Francisco County created nearly 40,000 jobs from early 2012 to March 2013, according to the most current data available from the economic analysis division of San Francisco’s Office of the Controller.

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