Understanding the High Cost of Building in the Bay Area

Multiple factors such as land, materials, labor, fees, financing, consultants, and tax regulations contribute to the high cost of building in the Bay Area. Local policies, state priorities, federal regulations, and market forces also play a role. As a result, construction projects in the Bay Area can be significantly more expensive compared to other regions. The total cost of building a 100-unit market-rate building in the East Bay is estimated at nearly $60 million. Affordable housing projects in the area also face cost challenges, with two examples showing costs per unit ranging from $399k to $603k.

• Bay Area
• Construction Costs
• Housing
• Building
• Regulations

malen Follow

Uploaded on Sep 25, 2024 | 0 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

Presentation Transcript

1. Why Does It Cost So Much to Build in the Bay Area?

2. Multiple factors layer together to influence the cost of building housing Land + Materials + Labor + Fees + Financing + Consultants + Tax, Title, Escrow = Total Cost

3. And those factors are influenced by multiple forces Local Policies and Land Use State Priorities and Regulations Federal Policy and Regulations Market Forces

4. It all adds up and makes building in the Bay Area particularly expensive Total Cost of a Prototypical 100-Unit Market Rate Building in the East Bay: $59,931,628 ($599k per unit) 22% 67% 11% Source: Terner Center pro forma analysis TERNER CENTER FOR HOUSING INNOVATION UC BERKELEY

5. Please welcome Andrew Cussen Development Manager, RAD Urban Elizabeth Kuwada Senior Project Developer, Eden Housing, Inc.

6. Total Cost of Two Affordable Projects in the East Bay: A: 60-Unit (2019) at $36,189,000 ($603k per unit) B: 90-Unit (2017) at $35,910,000 ($399k per unit) 23% 30% 77% 70% B A