San Francisco Development Projects Actually Getting Built in 2026

San Francisco is no longer just approving projects on paper — several major developments are actively under construction right now. From affordable housing breaking ground next to City College to a former power plant opening its first residential building, the city is building. Here's what's real, what's coming, and what it means if you're buying or selling in San Francisco.

Quick Takeaways

• Balboa Reservoir's first building (128 units, 100% affordable) broke ground in March 2026 — it's under construction now

• Potrero Power Station already has residents; a second building is being excavated

• Stonestown Galleria has approved plans for 3,491 housing units across multiple phases

• The Marina Safeway project (790 units) is moving forward under state law the mayor cannot easily override

• Treasure Island has completed its first 1,000 homes, new streets, parks, and a ferry connection

• A downtown rail portal could eventually connect 11 transit systems — and reshape which neighborhoods get repriced

What San Francisco Development Projects Are Actually Under Construction Right Now?

Several projects have moved past approvals and into active construction as of 2026. These aren't renderings — people are already living in some of them.

• Potrero Power Station: The Sophie Maxwell Building opened in October 2025 with 105 units of affordable housing. Foundation excavation is underway on Block 2, which will house a UCSF cancer research center. This former industrial waterfront is now open to the public for the first time in over 150 years.

• Balboa Reservoir: Infrastructure construction started in November 2025. Building E — 128 units of 100% affordable housing — broke ground in March 2026, directly adjacent to City College (free for SF residents) and a major transit hub.

• Mission Rock: Across from Oracle Park in China Basin, mixed-use development with housing, retail, and waterfront access has moved from renderings to reality. Worth a drive if you haven't been recently.

• Treasure Island: Up to 8,000 units planned. The first 1,000 homes are complete, along with new streets, parks, and a ferry line to the Financial District.

What Are the Safeway Redevelopment Projects and Do They Matter?

Safeway and development partner Align are advancing major mixed-use projects at four SF locations — and state law is now in the driver's seat on at least one of them.

• Marina Safeway: 790 units in a 25-story tower with a ground-floor replacement Safeway. The mayor opposes it. Five supervisors oppose it. Residents protested in April. California housing law still triggered a deadline requiring the city to approve or deny by early August 2026 — and the city has limited authority to block it under state statute.

• Bernal Heights (Mission Street): Mixed-use redevelopment proposed for the Safeway at the bottom of the hill — a high-visibility, underbuilt site.

• Western Edition: Preliminary permits filed. The Fillmore has a complicated history with redevelopment and community access to groceries is a real issue here. Worth watching closely.

• Outer Richmond: ~526 units proposed near Ocean Beach. The strategy: rethink underbuilt parcels in expensive, established neighborhoods.

The Marina situation is bigger than one building. A developer using state law to outmaneuver city leadership signals how a lot of SF development will work going forward.

What Is the Stonestown Redevelopment and Is It Real?

Stonestown Galleria has full approvals in place for 3,491 housing units across multiple phases. This is a long-game project — don't expect cranes this weekend — but it is real and moving.

The broader significance: a large surface parking lot and aging mall in a transit-connected, expensive part of the west side is being reimagined as a walkable neighborhood. That's a fundamentally different vision for what this part of the city can become.

What Is the Downtown Rail Portal and Why Does It Matter for Real Estate?

Salesforce Transit Center has train tracks installed but no trains running. That's intentional — it's a placeholder for the Downtown Rail Extension (DRE), which would connect Caltrain and eventually high-speed rail directly into downtown SF, tying 11 transit systems into one hub.

This isn't happening tomorrow. But transit access is the primary driver of neighborhood repricing in San Francisco. If you're evaluating which neighborhoods have the most upside over the next 10 years, the path of this line is the variable worth tracking.

The Reclaimed Land Framework: How SF Is Finding Space to Build

San Francisco isn't creating new land. It's reclaiming what it already had. Every major project in this wave shares the same pattern:

1. Identify underused or formerly off-limits land — parking lots, power plants, naval bases, industrial waterfront

2. Apply pressure through state law or long-term entitlement — bypassing the local political bottlenecks that have stalled projects for decades

3. Build in phases — Potrero Power Station, Mission Rock, and Treasure Island are all phase-by-phase projects, not single big bets

4. Anchor with affordability — Balboa Reservoir and Potrero Power Station both lead with affordable units, which accelerates approvals and community support

If you understand this framework, you can read the next wave of projects before they make the news.

Approved on Paper vs. Actually Getting Built

Status	Examples	What It Means for Buyers
Under construction now	Balboa Reservoir, Potrero Power Station Block 2	Nearby values are already shifting
Approved, phased build-out	Stonestown, Treasure Island, Mission Rock	Long-term upside, not immediate
State-mandated timeline	Marina Safeway	City opposition doesn't stop it
Filed, not yet approved	Western Edition Safeway, Outer Richmond Safeway	Worth monitoring, not banking on

FAQ

Is San Francisco actually building more housing now? Yes — several projects are under active construction in 2026, including affordable housing at Balboa Reservoir and new residential buildings at Potrero Power Station. The pipeline is real, though it varies significantly by project and location.

Can the mayor stop the Marina Safeway project? Under California state housing law, the city has limited authority to block projects that meet certain criteria. The Marina Safeway triggered a state deadline, which means the mayor and board of supervisors have significantly less control than they would under normal local review.

What neighborhoods are seeing the most new development right now? Potrero Hill (Power Station), Mission Bay (Mission Rock), the west side (Stonestown, Balboa Reservoir), and Treasure Island are the most active. The Safeway sites in Bernal Heights, the Marina, Western Edition, and Outer Richmond are advancing as well.

Does the Downtown Rail Extension affect where I should buy? It should be a factor in long-term planning. Transit access drives neighborhood repricing in SF. The areas closest to the eventual rail corridor — particularly SoMa and the eastern neighborhoods — stand to benefit most if the project moves forward.

About the Author

I'm Clay Gjevre, and I've lived in San Francisco for over 20 years across neighborhoods from Bernal Heights to the Marina. I've been selling real estate here for seven years, and I work with buyers and sellers across the city — with a focus on helping tech professionals figure out where to plant roots. If you're trying to understand how this market actually works, that's what I do.