Tri Pointe Homes' San Francisco division it looking forward to a good year. The firm is bullish on the housing market in the greater Bay Area, expecting strong demand for for-sale product and strong pricing appreciation. A lack of supply in the area will help to drive pricing increases and home sales this year.

"The Bay Area housing market outlook is very positive," Jeff Frankel, president of Tri Pointe Homes' Bay Area division, tells GlobeSt.com. "In 2021, we expect continued strong sales and price appreciation in most markets, which will result in low inventories. The year will not be without its challenges. Builders must manage COVID-19-related issues including supply chain adjustments, labor shortages and municipality delays. For buyers, the main challenge, again, will be lack of supply."

San Francisco has been badly impacted by the pandemic with some reports estimating double-digit rent declines. On the for-sale side, however, Frankel says that new demand has emerged for larger, flexible spaces. "A major trend coming out of the pandemic has been that homebuyers are looking for not only newer and larger space but also flexibility," he says. "More people are focused on finding a home that can accommodate work-from-home requirements and virtual schooling needs versus the old priorities of proximity to the office and commuting ease."