Building Cranes Everywhere
The high rise condo market in neighborhoods south of the Financial District (like Yerba Buena, South Beach and SOMA) is not performing as strongly as the rest of San Francisco, mostly due to an increased supply. Over 5000 new condos have been built in the past 4 to 5 years, with another 2000 expected to hit the market in the next 2 or 3.This surge of supply has been a substantial factor in the overall plateauing of condo median sales prices in the city since 2015.
Many of the cranes you see sweeping the sky are building rentals instead of homes for sale. This also affects the sales market as would-be buyers find adequate rental housing instead of choosing to buy. Slowing in the hi-tech sector also inclines millennials to rent instead of buy as the job market becomes slightly less stable.