UGH Impacts Real Estate

The Upper Great Highway is closed, but the saga surrounding it continues. This discussion will refrain from debating the issue, as there are other platforms available for such discourse. I want to focus on how closing the Upper Great Highway affects property values in the Richmond and Sunset districts.

Proposition K, which appeared on last year’s November ballot, passed citywide by a margin of 55% to 45%, effectively mandating the permanent closure of the Upper Great Highway from Lincoln Way to Sloat Boulevard for private vehicles. It established a public open recreation space. Although it was one of the most contentious ballot measures of the year, the west side of town, where the Upper Great Highway is situated, voted 65% to 35% against its closure. This indicates that residents closest to and most impacted by the decision predominantly opposed the measure.

The Upper Great Highway closed on March 14, with plans to reopen as a park on April 12. Meanwhile, a lawsuit has been filed to keep the Upper Great Highway open, and efforts are underway to recall Joel Engardio, the current supervisor for District 4, who championed Proposition K.

Various factors influence decisions regarding home purchases or rentals, including affordability, convenience, proximity to work, schools and churches. Additionally, considerations such as school districts, transportation options, recreational areas, walkability and lifestyle play significant roles. The ease of accessibility is paramount in city planning, beginning with road infrastructure and transportation systems.

Studies indicate that approximately 14,000-20,000 vehicles used the Upper Great Highway daily. With its closure, drivers must now rely on Sunset Boulevard, 19th Avenue or parallel numerical avenues, resulting in increased traffic and potential safety concerns, pollution and congestion in residential neighborhoods.

Residents of the Outer Richmond are among those most adversely affected by the closure, facing extended travel times due to congestion on Chain of Lakes and Crossover drives during commute hours. Consequently, property values in the Outer Richmond are likely to decrease.

Homes in the Sunset/Parkside area west of Sunset Boulevard will also experience heightened traffic. Residents on Lincoln Way have reported difficulties accessing their garages, and others complained about increased speeding on residential streets. While some anticipate rising property values due to proximity to a potential world-class park, it is worth noting that the development of such a park would require considerable time and funding, thereby leading to a decline in prices in the foreseeable future.

Central and Inner Richmond, while less impacted, will still contend with traffic through the park, particularly during events such as concerts and marathons that close sections of the park. Prices in these areas are also expected to decrease.

The Central and Inner Sunset/Parkside area will experience more traffic on Sunset Boulevard and 19th Avenue, although property values here will be less affected than in other parts of Richmond and Sunset districts.

Westside residents have expressed significant concern over the Upper Great Highway closure, with some referring to it as the “Great Highway Robbery” due to voters from other parts of town making a decision that primarily affects local users. The outcome remains uncertain amid ongoing legal proceedings and a recall campaign. This is not the end of the story, so stay tuned.

John M. Lee is a broker with Compass specializing in the Richmond and Sunset districts. If you have any real estate questions, call him at 415-465-0505 or email johnlee@isellsf.com.