Dive Brief:
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Just three in 10 existing three-bedroom homes in San Francisco are lived in by families with children, according to a new report from the San Francisco Planning Department, which highlights how current inventory is impacting the city’s shortage of low- and middle-income housing.
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The majority of new market-rate housing development in the city since 2010 has been for studios and one-bedroom units, according to the report, as young professionals are attracted to the city for its employment opportunities.
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Meanwhile, the number of middle-income families in San Francisco has decreased in recent years while low- and high-income households add to their count. The city hopes to encourage local developers and planners to find room for housing developments that support middle-income families, according to the San Francisco Business Times.
Dive Insight:
Like many large metros today, San Francisco is facing a severe shortage of low- and middle-income housing inventory as growing demand pushes prices up. The city took the No. 1 spot on Realtor.com’s list of the hottest housing markets in December based on the speed at which homes there sell and how tight inventory currently is.
In an effort to bring more housing stock online across the state, California Gov. Jerry Brown earlier this month proposed streamlining the permitting process and adding incentives to slash costs for builders and improve affordable housing options.
Officials in San Francisco have also adopted measures aimed at adding more affordable housing in the city, with voters this past summer passing a ballot measure that requires residential developments with 25 units or more to offer 25% at below-market rates, up from the previous requirement of 12%.
The San Francisco Planning Department report highlighted measures that could improve housing options for families while presenting opportunities for builders. One proposal put forward in the report suggested streamlining the approval and permitting process for adding bedrooms to existing homes so families can expand in their current residence.
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