Dear SF: Unleash the developers

San Francisco housing is unaffordable for most people. This drives out diversity. It makes businesses less competitive because salary costs are so high.

The solution is simple: build more housing. It’s not rent control or public housing. As a leading urban economist, Edward Glaeser, writes in Triumph of the City, “The only way to provide cheap housing on a mass scale is to unleash the developers.”

In 2017, San Francisco added about 4,000 net new units, or 1% of the total housing stock. This is far too slow. The economy is very productive and growing rapidly. Building codes and regulation are the primary culprit. Classic supply and demand.

I believe we should turn San Francisco into a three million person city over the next few decades. It will lead to incredible growth, innovation, dynamism, and prosperity. City dwellers use less energy and contribute more to the economy.

This building will need to be smart. We still want beautiful views and vibrant neighborhoods. The development corridor through SOMA and Mission Bay has been a boon. Where else can we upzone? Speed up development? What if we allowed every neighborhood to be 12 feet higher than currently zoned, allowing another floor per building?

We would need to work on our infrastructure. With 2 million net new residents, the city coffers would be flooded with cash and we could easily pay for it.

The city has long said it cares about affordable housing. Let’s do something about it.