These [California metros] just became hotter markets, and so, there's less inventory, there's more demand, so that means it becomes more attractive for someone who is an investor. The flurry of investor activity could be from investors betting on a continued artificial intelligence boom and an emphasis on return-to-office mandates in California metros.
The supply side factor is, I would say, by far the biggest difference between San Francisco and Austin. Austin is just building a ton, and really, I would say setting kind of a good example for growing in a way that actually meets increasing demand.
In addition to 7,000 new units of housing that are currently under construction and should be ready for occupancy within the next year or two, there are now 11,100 net-new units for which building permits have either been issued, approved or requested, and another 27,400 units in projects that have already been approved but not yet permitted (which includes the majority of the 10,500 units by Candlestick, 7,800 units on Treasure Island and 5,680 units at Parkmerced, projects which have overall timelines measured in decades, not years).
Santa Clara wrapped up 2025 with an impressive 2,768 new residential units, far surpassing the 155 completions from 2024 and earlier years. Most of these additions came as apartments and condominiums, with a small portion from accessory dwelling units and single-family homes. This wave of development marks a high point for the city, reflecting years of preparation that now deliver much-needed options amid the Bay Area's tight inventory.