Markets & EconomyRentals

Oakland may halt its housing growth with new fees

Proposed fees would noticeably increase housing development costs
  • The proposed fees have a long way to go before they are approved
  • The city has a pipeline of housing development, but acknowledges only limited development has commenced
  • Appears some multifamily developments may be delayed or nixed in the city moving forward.

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Maximum new housing fees proposed by the city of Oakland are unlikely to be the actual rates approved; however, the city's intent to noticeably increase the cost of new housing projects should alert builders. And it could have an overall impact on Oakland. In a recent study, the city unveiled the maximum fees it could charge homebuilders and developers for housing projects. For single-family detached homes, the maximum fees range from $64,009 to $110,905, depending on location within the city. These totals include affordable housing, transit and capital improvement-related fees. The city did acknowledge that "the maximum legal fee amount is typically higher than the amount that can feasibly be supported by new development." Erika J Mitchell / Shutterstock.com The actual rates will be determined following public feedback, discussions with developers and advocates and city council action. The first public hearing will be held December 15, so these proposed fees have a ...