Episode Highlights:

• A few weeks ago, we discussed the housing crisis and how permitting challenges slow down new construction in many markets.
• San Francisco's permitting process is particularly notorious, with a local newspaper investigating and confirming that it indeed "takes forever to build anything."
• Key findings from the investigation:
  • Average time for multi-family development permits: 627 days.
  • Average time for single-family or duplex permits: 861 days (2.5 years).
  • These timelines exclude the initial planning and entitlement process.
• The permitting process in San Francisco has become an entire industry, requiring consultants and expeditors that only wealthier developers can afford.
• The timeline for obtaining permits has increased by 83% since 2012, despite advancements in technology and automation.
• This extended permitting process significantly raises the costs of construction due to:
  • Property taxes, insurance, and interest during the waiting period.
  • Overhead and carrying costs for developers.
• As a result, luxury housing becomes the primary focus, not due to greed, but because entry-level or affordable housing is unprofitable under these conditions.
• The paper reported that in the last decade, 270 projects in San Francisco took more than four years to gain approval.

Discussion Points:

• Is permitting challenging where you’re located?
• Have you noticed improvements or setbacks in the streamlining process?
• How do these delays affect the affordability and availability of housing in your area?

Tune in to explore the impact of permitting inefficiencies on the housing market and share your thoughts!