Construction Begins on New Affordable Housing Project in San Francisco

San Francisco, August 28, 2025

News Summary

San Francisco has commenced construction on an 11-story affordable housing development at 300 De Haro Street in Potrero Hill, aiming to provide 425 new apartments for low to moderate-income tenants. This project is part of a broader initiative to address the city’s housing crisis and reflects recent legislative efforts to accelerate housing production. Criticism regarding community engagement and neighborhood impact has arisen as some residents express concerns about the project.

San Francisco Breaks Ground on 425-Unit Affordable Housing Development at 300 De Haro Street Amid Housing Crisis

Construction has officially begun on an 11-story affordable housing project at 300 De Haro Street in Potrero Hill, San Francisco. The development will introduce 425 new apartments aimed at tenants whose incomes range from 30% to 70% of the area’s median income, which translates to approximately $41,000 to $95,000 annually. This effort comes amid a persistent housing crisis that has significantly impacted residents throughout the city.

The apartments in this project will be compact, offering studios sized between 300 and 400 square feet. Each unit is designed to maximize space with features such as convertible furniture, including Murphy beds, catering to the needs of both individuals and small families. The aim is to provide an affordable living option without compromising on modern amenities.

This development marks one of the early implementations of Senate Bill 35, which was developed to fast-track housing production. The bill allows developers to bypass specific review processes in cities that fail to meet state-mandated housing objectives. The goal of SB 35 is to streamline the construction of affordable housing, addressing the urgent need for more options in San Francisco and other populated regions.

Despite significant demand, San Francisco has faced challenges in meeting housing goals. In 2024, the city permitted only 1,074 new housing units, the lowest number since the Great Recession. Current monthly rents highlight the issue; for example, average rents in San Francisco are approximately $3,280, while Los Angeles reports around $2,330. The soaring prices reflect the ongoing struggle for residents to find affordable housing.

Financial barriers have also influenced the pace of residential developments. Increasing construction costs and financing difficulties have led some developers to focus solely on affordable housing as a practical solution. The 300 De Haro project was initially intended to include mixed-income housing but shifted to a fully affordable model due to changing economic conditions and advantageous financing opportunities, including low-income housing tax credits.

The project aims to incorporate around 6,000 square feet of retail space, as well as a range of community amenities such as lounges, fitness areas, and a rooftop deck. This integration of retail and communal facilities is designed to enhance the living experience for residents while contributing positively to the neighborhood.

San Francisco is under pressure to deliver 82,000 new housing units by 2031 in order to address the state’s overarching housing shortage. The 300 De Haro project represents a critical step in fulfilling this commitment, having taken six years to move from planning to groundbreaking, significantly impacted by the economic disruptions caused by the COVID-19 pandemic.

Community reactions to the project’s height and overall impact have been mixed, with some neighbors raising concerns about the speed of the decision-making process facilitated by SB 35. Nonetheless, the development is positioned as a crucial solution to increasing the proportion of affordable housing in San Francisco amidst a challenging market environment.

Once completed, the 300 De Haro development will be the largest affordable housing project launched in San Francisco since the beginning of the COVID-19 pandemic. The projected completion date is set for summer 2027, marking a significant milestone in the city’s efforts to alleviate its housing crisis.

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Additional Resources

• CBS News: San Francisco Develops 425 Unit Affordable Housing
• SF Chronicle: Affordable Apartments in San Francisco
• The Frisc: Supreme Court and SF Affordable Housing Funding
• NBC Bay Area: New Housing at 300 De Haro Street
• SFYIMBY: Affordable Housing at 301 Alves Lane
• Google Search: Affordable Housing San Francisco
• Wikipedia: Affordable Housing
• Encyclopedia Britannica: Housing
• Google News: San Francisco Housing News