SF Biz Times: “Why San Francisco has the second-highest construction costs in the world”
“San Francisco has the world’s second-highest construction costs because of complex, burdensome approvals, a severe labor shortage and easy paths for opponents to delay projects, according to a new report…
Design requirements such as facade aesthetics, balcony spaces and more expensive materials were also cited by the Terner Center as cost burdens. Those requirements are particularly challenging for affordable projects, which rely on public subsidies to be financially feasible and can’t charge high rents to cover extra costs. As a result of the requirements, some affordable projects have had to reduce unit counts, according to the report.
“Our members strive to deliver affordable homes that are safe and attractive today and for generations to come. Given the extreme need and given the proven positive community benefits that result to families and neighborhoods, it is critical that we push to streamline the process and reduce barriers so that our members can build affordable homes in the most efficient and cost-effective ways possible in this challenging environment,” said Amie Fishman, executive director of the Non-Profit Housing Association of Northern California, in a statement.”
Read more via San Francisco Business Times