San Francisco holds hearing on rising residential vacancy rates and potential policy solutions

The San Francisco County Board of Supervisors convened on July 4, 2025, to address the pressing issue of residential vacancies in the city. The meeting, led by Supervisor Preston, focused on a report from the Budget and Legislative Analyst (BLA) detailing the alarming rise in vacant housing units, which now account for nearly 10% of the city’s residential inventory.

Supervisor Preston emphasized that while discussions about housing often center on new construction, the significant number of existing but unoccupied units must also be addressed. The report revealed that since 2015, the number of vacant units has surged from approximately 20,000 to over 40,000, highlighting a critical failure in housing policy. This increase in vacancies has outpaced the production of new housing, which has only seen a modest rise during the same period.

The BLA's analysis categorized the reasons for vacancies, identifying that many units are held as investment properties or second homes, with a notable increase in units classified as "sold but not occupied." This trend indicates that many properties are being kept off the rental market, exacerbating the housing crisis in a city already known for its high living costs.

During the meeting, various policy solutions were discussed, including the potential implementation of a vacancy tax. Similar measures in cities like Vancouver and Oakland have reportedly led to reductions in vacant units and generated significant revenue. The BLA suggested that a vacancy tax could activate an estimated 4,600 units within two years, a figure that could rival the annual production of new housing units in San Francisco.

Public comments during the meeting reflected a mix of support and concern regarding the proposed tax. Some residents highlighted the need for more comprehensive tracking of vacant units and expressed skepticism about the effectiveness of a tax without robust enforcement mechanisms. Others pointed out the emotional and familial complexities surrounding vacant homes, particularly those held by heirs who may not know how to manage inherited properties.

In conclusion, the meeting underscored the urgency of addressing residential vacancies as part of a broader strategy to alleviate the housing crisis in San Francisco. The Board of Supervisors is expected to consider the BLA's recommendations and explore potential policy interventions, including the vacancy tax, in future sessions.