While the rest of San Francisco argues about whether a studio apartment should cost $3,200 or $3,500 a month, there's apparently another housing crisis brewing — one affecting the city's most vulnerable population: people who can casually drop $56 million on a house.

Yes, San Francisco is reportedly experiencing a "mansion shortage." The ultra-luxury market — think Pacific Heights estates with panoramic views, enough square footage to host a fundraiser gala, and zero construction projects within earshot — is running low on inventory. A recent Pac Heights sale at $56 million reportedly hit the "trifecta" that deep-pocketed buyers are hunting for: space, views, and no nearby projects. Apparently even nine-figure net worth doesn't buy you immunity from jackhammers at 7 a.m.

Look, we're not here to begrudge anyone their dream home, even if that dream home costs more than the annual budget of some California school districts. Rich people buying expensive things is how markets work, and high-end real estate transactions generate substantial transfer tax revenue for the city. A single $56 million sale dumps hundreds of thousands into city coffers. We'll take it.

But let's zoom out for a second. The reason there's a "mansion shortage" is the same reason there's a shortage of pretty much every type of housing in San Francisco: we don't build enough of anything. The difference is that the ultra-wealthy can simply outbid each other for existing stock. Everyone else gets squeezed out entirely.

San Francisco approved roughly 2,400 new housing units in 2024 — a fraction of what's needed at every price tier. The permitting process remains a bureaucratic obstacle course that would make Kafka weep. Meanwhile, the city keeps layering on fees, reviews, and delays that make construction more expensive and less attractive to developers.

So sure, shed a tear for the hedge fund manager who can't find a $40 million view home. But maybe — just maybe — the real story is that a city this desirable still can't figure out how to let people build houses in it. Fix the pipeline for everyone, and the mansions will take care of themselves.