West Coast Development Updates:
Cap rates, interest rates, and construction costs are on the rise, and these economic trends have impacted developers’ willingness to push ahead on projects this year. However, despite market headwinds, exciting affordable and luxury residential projects are slated to commence in 2024, bringing new options to Portland’s residential market and offering affordable housing options in San Francisco’s housing landscape.
Here are the projects to keep an eye on this year:
Portland Welcomes the Ritz Carlton Tower
The new Ritz-Carlton in downtown Portland finished development in Q4 of 2023, offering an unmatched residential experience, with penthouses and condos boasting luxury amenities and exclusive access. Sales are underway for 132 private residences in the Block 216 apartment complex, a tower that will also include a hotel and retail spaces. The tower alludes to a brighter future for Portland, signaling to developers that the city is trending in a positive direction.
Navigating Challenges: San Francisco's Housing Landscape in 2024
San Francisco housing production experienced a sluggish year in 2023, with only 2,024 units completed. The notable decline in construction, attributed to pandemic-induced uncertainty and soaring construction costs, poses a challenge to the city to reignite construction momentum as it aims to sanction the development of 82,000 new units by 2031. On top of the construction crunch, controversy surrounds efforts to streamline development processes, exposing tensions between facilitating growth and preserving affordability in San Francisco's housing market.
Nevertheless, amidst these challenges, the city made strides with the commencement of four affordable projects in 2023, including a significant 203-unit high-rise at Fifth and Mission streets, showcasing incremental progress in addressing housing needs despite broader obstacles.
