San Francisco struggles with housing shortages, but Mayor Daniel Lurie aims to change that with innovative prefab solutions.

San Francisco: More than a century ago, President William Taft praised the city for its resilience after the 1906 earthquake. It lost around 28,000 buildings but rebuilt quickly, even bending some rules.
Today, SF faces another big challenge. The city needs to create over 82,000 new homes this decade. That’s a massive task, especially since they can’t just ignore building codes anymore.
While state officials are easing some restrictions to speed up housing projects, the financial side is still tough. The city’s economy isn’t great, making investors nervous, and voters recently shot down a big bond for affordable housing.
Enter Daniel Lurie, the new mayor. He’s been talking about fresh ideas to tackle the housing crisis. He often mentions his nonprofit’s success in developing affordable housing, but it’s just one project so far.
Prefab homes have been around for a while, but they’ve had a bad reputation. People used to think they looked cheap and weren’t safe. However, that view is changing, especially in places like Sweden, where modular homes are becoming popular.
In fact, 45% of new homes in Sweden use modular technology. It’s a smart move, especially in areas prone to earthquakes, like San Francisco. Modular homes are easier to fix and replace after a quake.
SF’s first modular project was 38 Harriet Street, built in 2013. There have been other attempts, but many local politicians have been hesitant about using overseas labor for these projects.
Factory_OS, a modular developer in Vallejo, has worked on some SF projects, including the one Lurie often highlights. His nonprofit helped build 833 Bryant, a 145-unit building that was completed in just three years and cost less than traditional builds.
However, the success of these projects often relies on unique funding sources and smaller unit sizes. The modular industry has faced challenges, with some companies going under recently.
Despite the hurdles, Lurie’s opponents have tried to criticize his projects, but voters seem to support his vision. When asked about future modular homes, he hinted at proposing new solutions without giving specifics.
Former planning director John Rahaim believes Lurie should push for more modular homes, but he acknowledges that the current manufacturers can’t meet the city’s huge housing goals alone.
Patrick Kennedy, who helped build SF’s first modular apartments, is skeptical about the technology’s future in the city. He thinks the design process is too complicated and that SF’s unique building styles make it hard to standardize modular homes.
Labor unions also pose a challenge. While some unions support modular homes, others are resistant, fearing they might compromise quality. There’s a push for union-made modular homes, but that’s a tough sell in a city with limited manufacturing capacity.
Interestingly, the Nor Cal Carpenters Union has been more open to modular construction, seeing it as a chance for more union jobs. As cities like Los Angeles face housing crises, the pressure is on for SF to find faster, cheaper, and compliant ways to build homes.
In the past, SF allowed builders to cut corners after disasters, but today’s housing market is different. The city needs to adapt and find solutions to its ongoing housing challenges.