San Francisco's new residential projects are increasingly prioritizing affordability and sustainability amid rising demand. Mixed-use developments with below-market-rate units and energy-efficient features dominate the market. Average prices for new units hover near $1.8 million, though affordable housing mandates ensure 20-30% of projects include units priced 20-30% below market rates.

The surge in new residential developments stems from San Francisco's acute housing shortage and affordability crisis. From 2010 to 2023, the city’s population grew by 8%, while housing supply increased by just 3.2%, according to the San Francisco Open Data Portal. This imbalance has driven median home prices up 150% since 2010, making ownership unaffordable for many residents. To address this, the city enforces inclusionary housing policies requiring developers to allocate a percentage of units at below-market rates. For example, the 2022 median income for a family of four was $139,000, yet 70% of homes sold for over $1.5 million, per the Federal Housing Finance Agency. Additionally, green building codes and density bonuses incentivize mixed-use projects, reducing urban sprawl. In 2023, 65% of new permits were for mixed-use buildings, up from 45% in 2018, as reported by Build It Green. These measures aim to balance growth with accessibility, though challenges like rising construction costs and NIMBY opposition persist.