San Francisco and Marin face a deep housing shortage driven by restrictive zoning, high building costs, and resistance to density. Slow permitting and limited developable land keep supply tight, fueling competition and rising prices across both counties.
Why Is There a Housing Shortage?
The Bay Area’s housing shortage isn’t a single-cause problem, it’s the result of decades of overlapping policies, economic realities, and local resistance to density.
In San Francisco, strict zoning laws, lengthy permitting processes, and neighborhood opposition to new development have kept housing production far below demand. Even projects that meet zoning rules often face appeals or delays, making construction timelines unpredictable and costly.
In Marin County, the challenge is magnified by geography and community preferences. Much of the county is open space or hillside terrain, and many towns limit multi-family housing through low-density zoning. The result: extremely low turnover and few opportunities for new construction.
High material costs, labor shortages, and rising interest rates compound the issue, pushing developers to focus on luxury or higher-margin projects rather than workforce housing. This imbalance creates a persistent shortage across both counties, driving prices higher and keeping entry-level buyers locked out of the market.
Oliver Burgelman
Real Estate Broker – Vanguard Properties
📍 San Francisco & Marin
📞 415.244.5846 | ✉️ [email protected]
