San Francisco's affordability crisis appears to have no end in site with the construction costs being driven up due to a companies competing for laborers. Bloomberg staffer Allison Vekshin reports on the decision of developers to focus on the wealthier projects that will be able to justify the costs that will go into their construction.
The increasing costs in San Francisco are also due to local challenges that makes it difficult for outside contractors:
In San Francisco, costs are particularly high because access to the city is constrained by bridges and congested highways, making it difficult for contractors to come from outside the city, said Gregg Nelson, Trumark’s co-founder. There’s also a shortage of skilled workers who can handle large-scale commercial projects, he said, estimating that direct building expenses have increased 50 percent to 60 percent since 2012.