San Francisco inventory influx may not damper demand

Firm expects new condos to be in short supply moving forward
  • San Francisco will return to a "normalized supply" of roughly 1,000 condo deliveries in each of the next four years.
  • Condo deliveries will be concentrated in the southeastern portion of the city moving forward.
  • Some industrial land is being purchased in the city and being reused for condo projects.

Pent-up demand for new condos will continue in San Francisco during the next four years despite a return to historical delivery volumes and a pipeline of proposed deals. This is the opinion of Garrett Frakes, managing partner of sales and marketing firm Polaris Pacific, who refutes the idea that 1,000 condo deliveries a year will erase the city’s shortage of for-sale units.