Every year, PwC publishes a report of the latest developments in real estate around the world. Here is a summary of their latest findings about the market in the Bay Area in 2019:
- Focus groups in San Francisco, San Jose, and Oakland expressed concern about the lack of affordable housing, which could potentially limit future economic growth.
- In San Francisco, there is concern about whether enough housing is available in general.
- Some believe that San Francisco’s Proposition M, which limited development after 1986, enabled both a commercial and a housing crunch. Now, the city may decide to lower some of those restrictions.
- San Francisco is building new properties to meet the rapidly changing technology needs of tenants.
- The burdens of regulation, high construction costs, and rising NIMBY (Not In My Back Yard) sentiment are significant issues in San Francisco and Oakland real estate.
- The implementation of new construction processes and the rise of urbanized suburban developments may be solutions for San Francisco, San Jose, and Oakland.
- San Francisco and San Jose report that suburban locations are becoming more attractive to Bay Area tenants.
The full report is available here: