Is it a problem only for SJ? Or is it a widespread slowdown?
‘On Tuesday, Liccardo said he was “aghast” to find that the city last year granted planning permits for fewer than 200 housing units — a step before issuing a building permit — signalling there aren’t many homes waiting to be built.’
Building in the BA isn’t worth the hassle
I thought the article was well written. It clearly laid out the issues on building even with permits available. People can’t make money and didn’t fear monger on rents by pointing out rents only went up 1%
Government cost is prohibitive. 15% needs to sell below market. Entitlement is expensive. Permits and impact fees are expensive.
Also labor cost has gone up. Rent is stagnant and it could go down.
The mayor is now suggesting to waive the 15% BMR requirement, but why did they make that requirement in the first place?
I think the market is peaking. Rent is stagnant due to affordability and people are moving out.