Affordable housing construction is taking off in Oakland

Oakland's affordable housing construction surged last year, permitting around 700 low-income homes and marking the highest rate of development in over a decade. This increase is primarily due to Measure U, which authorized $350 million for affordable housing initiatives, according to Emily Weinstein, director of Oakland’s Housing and Community Development Department. She emphasized that the funding has allowed the city to navigate financial roadblocks and push forward with developments. Currently, more than 2,000 affordable apartments are in the city's construction pipeline, awaiting funding. While affordable housing construction is up, market-rate development has plummeted, affected by rising costs, high interest rates, and declining rental demand.

Builders also face challenges with the city’s slow permitting process. Last year, Oakland completed 2,249 housing units, representing about 45% of all housing built in Alameda County, despite having only 26% of the county's population. This trend positions Oakland as a leader in housing construction relative to its size.