Construction Boom Could Be Nearing Its End in San Francisco

Photo courtesy of

Photo courtesy of

After a riding a construction boom for the better part of two years, San Francisco saw the industry pump its brakes in 2013. Although there are still signs the industry is slowly growing, figures in a recent report suggest its hot streak may have over.

In a recent review of the remodeling and construction industry in San Francisco, BuildZoom, an online resource that helps individuals find reliable contractors, reported that the city experienced an annual growth of 1.2% in the number of building permits. In all, the city issued 18,075 permits, the highest total since the city began keeping records in 2000. Although this increase indicates some growth, the economic impact of these projects pales in comparison to that of previous years.

According to the report, the cumulative value of the projects completed in 2013 was down 34% from the year before. One theory for the decline, according to one business/economic correspondent, is that there just isn’t a lot of available land zoned for large commercial projects in San Francisco.

Overall, compared to the rest of the United States, San Francisco spent much of 2013 under performing in the residential sector but managed to keep pace with regards to commercial activity.

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