It’s common practice for us to look back at the most recent month and dissect the trends. Typically, we look at the most recent month of data and compare it against the month before while also looking at year to date comparisons.
Without further ado, lets jump in.
Last week we put a closing stamp on the month of May. It was another good month for construction, developers, and the SF economy. There were about 3,600 building permits issued for a total of $379,419,993, which comes out to an average cost of about $105k per project, however, that average is skewed by some very big projects. The median building permit is actually $6,000, which reflects more fixer up jobs than complete overhauls.
This compares to about 3,400 building permits issued in May, 2017 for a total of $384,911,813, which is an avg of about $113K and a median project of $8,000. The month of May in 2017 was a little bit stronger than 2018, but how does it compare year to date?
Year to date construction trends in San Francisco
This year there have been 17,241 permits filed in San Francisco for $1,729,017,516. The average cost is almost exactly $100K while the median is again $6,000.
At this point last year, there were 15,157 for $986,377,007, increases of 13.7% and 75% respectively. While May 2017 was stronger than May 2018, this is a big year in construction.
Biggest construction projects in San Francisco
Another easy way to normalize the data is to look at the big outliers. Were there a few big projects that jacked the price data or is it pretty normal?
The biggest project in May was for $80,000,000 at 120 Stockton St. The owners, an LA based company, want to do a complete overhaul of the building and make it more retail sales friendly.
After 120 Stockton, there was another permit for $18,500,000 at 793 South Van Ness Av. This is a renovation of a hospital. We wrote about this project in a recent blog post.
2017 also had a few outlier projects that were worth $60MM each, so its hard to say that these months were that different.
All this great data is courtesy of Local Insights. You should check it out!