Quote:
Originally Posted by gillynova
I hope to GOD this breaks ground by the time I move back to the Bay. I need some construction cranes around the Bay Area
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There's actually quite a few projects that are "approved" and ready to go pending funding, so developers are just sitting on these stalled projects. They are waiting for more "economically feasible" conditions. Rents are already skyrocketing higher than ever, but lenders still want to wait until profits can be maximized especially in light of high construction and borrowing costs, as well as burdensome affordability requirements.
It's the unfortunate byproduct of an overly capitalist system where despite insanely high demand for housing, developers/lenders won't break ground unless conditions are ripe for them to profit sufficiently, even with streamlined requirements and loosened restrictions. Even with new bills passed that have streamlined approvals, reduced regulatory barriers, and removed local control from blocking new housing construction, new housing construction is only at a trickle. At this point, we may need to consider some sort of incentive program to catalyze private market developers to actually start building.
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