The ‘affordable housing balance’ just keeps getting worse
The third “Housing Balance Report” from the City Planning Department was quietly released last week, coincidentally one day before April Fool’s Day and one week before a Planning Commission hearing today. And the punchline is … wait for it … the citywide housing balance of net new affordable housing from 2006 through 2015 is down to 13 percent. The last report in September had it at 15 percent, the July report before that was at 16 percent. The trend line is pretty clear. Overheated real estate development cycle, declining percentage of affordable housing.
And what is being built currently? Wait for it … only 14 percent of all new development now under construction or with active building permits will be affordable to anyone earning less than 120 percent of median income (a San Franciscan earning less than $85,000 per year). And for most market-rate housing today, you have to earn much, much more than $85,000. This bleak news comes at a time while San Francisco is experiencing one of its worst gentrification cycles in history.
Looking even further ahead to the next round of development — based on the entitlement “pipeline” of projects, the Housing Balance Report shows a whopping 15 percent affordable housing (the report does note that this number may increase if more developers commit to provide on-site inclusionary units in their projects)… (more)