Housing planner reports 4633 new units added in 2021 amid economic slowdown

In a recent meeting, San Francisco's community equity team presented significant findings from the city's housing inventory and balance reports, highlighting both progress and ongoing challenges in housing production. The reports, which have been published annually for over 40 years, track trends in housing development, including the production of affordable and market-rate units.

The data revealed that San Francisco experienced a notable increase in housing production in 2021, with 4,633 new units added—one of the highest totals in the past two decades. This surge comes despite an overall economic slowdown, indicating a resilient housing market. However, the number of units authorized for construction fell to just over 2,000, suggesting a potential slowdown in future developments.

A key highlight was the substantial rise in affordable housing, which more than doubled from the previous year, reaching nearly 1,500 units. This increase represents about 32% of all housing produced, a significant improvement compared to the recent average of 25%. Despite this progress, the city is still falling short of its regional housing needs allocation (RHNA) targets, particularly for very low and low-income housing, where production is currently below 50% of the required amounts.

The reports also indicated that most new housing is being concentrated in larger multifamily buildings, with a notable increase in accessory dwelling units (ADUs). However, housing development remains heavily focused in specific districts, particularly in commercial and mixed-use areas, with 78% of new units added in just three planning districts: the Mission, Downtown, and South of Market.

As the city prepares for its next housing element cycle, officials acknowledged the need for increased efforts to meet future housing targets, which are expected to be two to three times higher than current levels. The meeting underscored the importance of addressing housing equity and ensuring that all residents have access to affordable living options in a rapidly changing urban landscape.