Source: BISNOW

Date Published: 9/23/2025

Link: San Francisco Races To Meet Housing Requirements As Upzoning Initiatives Advance

San Francisco is racing to meet its state-mandated goal of building 82,000 new housing units by 2031; however, economic and political hurdles threaten to slow progress. Recent years have seen sluggish development—just 3,519 units were built between 2023 and 2024—prompting city and state leaders to push for aggressive upzoning initiatives. Mayor Daniel Lurie’s “family zoning” plan, which could enable the development of 36,000 new units, and California’s Senate Bill 79, which mandates increased density near transit hubs, aim to unlock development potential. However, high labor and material costs, legal challenges, and political instability—such as the recall of Supervisor Joel Engardio—complicate implementation. Lurie’s plan promotes “gentle density,” allowing mid-rise buildings in residential and commercial zones, with incentives for family-sized units. It also offers developers flexibility in meeting affordable housing requirements, unlike the state’s stricter mandates. Failure to pass the plan by January 2026 could trigger the “builder’s remedy,” stripping local zoning control and jeopardizing funding for parks and infrastructure. While the initiatives represent a major policy shift, experts warn that they may fall short without subsidies or reforms to modular construction, which would reduce costs.