Look, I just read something from HousingWire that really gets at what we're all grappling with these days. Builders across the country are being asked to pack more units into their projects through density mandates, and the trick is figuring out how to do that without building something nobody wants to buy. According to HousingWire, this challenge doesn't play out the same way everywhere. What works in one market can completely flop in another, even within the same state.
Here in the Bay Area, we've got some real advantages when it comes to tackling density. Brookfield Residential's team explained that buyers here are comfortable with all sorts of product types, which gives developers flexibility. They're building stacked flats, three-story townhomes, and detached units that look and feel different from each other even when they're closely packed together. The key insight is that even when homes are attached or sharing walls, smart design like alley-loaded homes and narrow setbacks can make a neighborhood read as single-family character to people walking through it.
But head an hour or two away from the Bay, and the same strategy falls flat. According to the panelists, Sacramento buyers might accept three-story townhomes, but go up to Chico and people expect one-story units. That doesn't mean density isn't possible in those markets, just that it requires different solutions. One developer in Chico got creative by using smaller units, around nine hundred square feet or less, and organizing them around courts to increase density while respecting local expectations.
The financial mechanics matter just as much as the design. HousingWire reported that parking decisions are a perfect example. In some communities, developers ditched expensive two-car garages for single garages and parking pads, cutting costs and freeing up land without sacrificing convenience. That kind of tradeoff works when parking isn't the main draw. But in dense urban cores like San Francisco, dedicated parking actually commands a premium because people value it.
One approach that's gaining traction is mixing different product types and densities within the same development. This lets builders target different buyer profiles and price points rather than putting up identical units everywhere. It also helps with the affordable housing requirements we have here. Developers can concentrate affordable units in one section optimized for that economics, while market-rate units elsewhere operate under different financial models.
What I'm seeing locally is that our best developers understand density isn't about hitting a minimum number on a spreadsheet. It's about creating neighborhoods that feel right for the area and actually appeal to the people buying there. The Bay Area gives us room to experiment with different product types, but that flexibility is a tool that requires smart use. Our market will reward developers who think deeply about what the neighborhood needs, not just what the regulations require.
