Solving the housing crisis in San Francisco with factory-built housing technology and regulatory reform

Abstract

The San Francisco Bay Area is in the midst of a housing crisis as population and economic growth outstrip the ability of developers to build enough housing, resulting in a significant supply-demand imbalance that is expected to last well into the foreseeable future. San Francisco, in particular, faces the most severe housing crunch as demographic trends favor increasing demand in already dense, transit-rich cities. Developers are unable to supply the necessary housing due to significant barriers to development including a lengthy and convoluted planning and entitlement process, zoning restrictions on density and height, neighborhood opposition, and a high cost of land. Supply needs to outpace demand if housing is to become affordable, and this requires regulatory reform and cost reduction. Based on case studies, interviews and development analysis, this thesis will demonstrate how developers and municipal leaders can address the crisis by embracing factory-built housing while reforming regulations.