More Bay Area Construction to Resume
Many market-rate real estate development projects that were stopped by the first Shelter-in-Place mandate are due to restart after May 3, 2020 under the new guidelines that were revised on April 30 for several Bay Area counties and City of Berkeley. San Francisco Chronicle reported that several developers and general contractors in San Francisco and Alameda counties expect most of their workers are expected to be able to return, having been laid off in March and just in time before they leave the construction industry and/or the Bay Area. In the short term, many jobs may be saved and would significantly improve the local economy. In the long run, new housing are expected to help alleviate the acute housing shortage. According to ABAG, nearly 23,500 housing units are needed each year in the Bay Area through 2022, a goal that has not been met in years and decades. In 2018, for example, only 15,431 new housing units were built in the Bay Area according to MTC.
Photo Credit: Bloomberg