San Francisco OKs Budget Amid Slow Property Value Growth

It was a week of lows — and some highs — in Bay Area housing news as the region posted small growth rates for property values and home sales.

For the fiscal year ended June 30, San Francisco’s assessment roll for land, structures and business property that are subject to property tax increased 1.8 percent, or about $353.5 billion, the San Francisco Chronicle reported. That marks the lowest year-over-year growth rate since 2011 and a decrease from 2.2 percent expansion the year prior, putting the city in last of the Bay Area counties.

The “very, very modest growth” means property taxes likely “will be stagnant to declining in the next couple of years,” Michelle Allersma, director of the Controller’s Office’s Budget and Analysis Division, told the Chronicle. As a result, “flat property tax revenues feel like a hit” because they are not keeping up with expenditures, Allersma said. “We are bracing ourselves for changes to federal and state revenue.”

San Francisco’s housing market, meanwhile, saw a slight tick up in home sales over the past year, though it has slowed in recent months.

The city saw a 12.2 percent increase in home sales year-over-year in June 2025, according to the California Association of Realtors’ monthly report. Home sales creeped up 1.2 percent from May to June to 221 single-family residence sales.

Homes across the city went for well above asking price last month with a 111.2 percent sales price-to-list price ratio. Home prices rose 3.3 percent year-over-year, though they fell 5.3 percent from May to June.

Across the Bay Area, home sales prices largely held steady month-over-month and year-over-year in June, while transactions increased 1.6 percent from May to June and 1 percent year-over-year.

Lurie’s $16B budget passes amid blowback

The San Francisco Board of Supervisors has given final approval to Mayor Daniel Lurie’s $15.9 billion budget for the next two fiscal years.

The board passed along the budget with a 10-to-1 vote and is headed to Lurie’s desk with an Aug. 1 signing deadline. Under the new budget, the city will be cutting spending in various departments hoping to close an $800 million budget deficit.

The sole dissenting vote was Supervisor Jackie Fielder, who lambasted what she sees as the decision to cut corners where it will affect the city’s most vulnerable. Board budget chair Connie Chan was also not happy about the budget, though she voted to approve it, according to The San Francisco Chronicle.

“I cannot in good conscience vote in support of this budget,” Fielder said. “I will be voting ‘no’ with disappointment, with frustration but also with clarity about the kind of city we are fighting to become. We owe our residents more than austerity.”

A total of 21 departments across the city will see funding cuts as part of the budget. That includes a nearly $104 million slash to the Department of Homelessness and Supportive Housing. Other reductions include $57 million from the Office of Economic and Workforce Development and $26 million from the infrastructure-focused Department of Public Works.

Bay Area, NY pols partner for bipartisan ADU bill

The federal government might be able to start providing a helping hand for homeowners struggling to finance an accessory dwelling unit.

California Rep. Sam Liccardo and New York Rep. Andrew Garbarino joined forces in Congress to propose the Supporting Upgraded Property Projects and Lending for Yards Act. The bipartisan effort aims to provide government-backed, flexible financing options to help homeowners of modest means overcome a critical monetary hurdle to break ground on an ADU.

Under the SUPPLY Act, the Federal Housing Administration would provide government backing for second mortgages to finance ADU construction. It also permits Fannie Mae and Freddie Mac to purchase and securitize those loans.

“With access to capital, we can empower homeowners to become home providers for thousands of renters in every metropolitan area,” Liccardo, a former San Jose mayor, said in a statement on the legislation.

The bill has been referred to the House Committee on Financial Services for further hearings.

California Forever adds ambitious project to agenda

The footprint for the controversial California Forever project planned in Solano County has gotten even bigger.

Jan Sramek, CEO of California Forever, announced a proposal to add a 2,100-acre manufacturing campus called “Solano Foundry” to the master-planned city and logistics hub.

Solano Foundry would span 40 million square feet and house “the most innovative industries, including advanced transportation, robotics, energy and defense,” and bring 40,000 jobs to the region, according to the project website. If completed, it would be the largest industrial facility in the country.

Solano Foundry would rise on the western edge of the unnamed 17,500-acre planned city in Solano County. In addition to industrial facilities, the development is slated to include affordable homes for workers as well as luxury-style amenities like lounges, community areas, restaurants and cafes.

Elsewhere, California Forever is looking into constructing a 1,400-acre shipbuilding facility in Collinsville, about 7 miles from the Solano Foundry site.

Prologis swaps out industrial complex plans in North San Jose

Prologis is changing course for an industrial site in North San Jose.

The San Francisco-based logistics giant has submitted a proposal to the city to repurpose an existing industrial building at 2256 Junction Avenue into an electric vehicle distribution center. If approved, Prologis will revamp the ancillary offices, site power, lighting, paving and roof on the site. It would also seek to outfit the building to conduct repairs like software updates and replace tires and other parts.

Prior to the new proposal, Prologis received final approval to demolish the existing building and replace it with a larger warehouse and industrial hub. Instead, the real estate investment trust is looking to reuse what’s already there.

Duke Realty owned the one-story, 107,700-square-foot structure until Prologis acquired the Indianapolis-based firm in 2022 for about $26 billion.

— Chris Malone Méndez