Several large parcels of land in San Francisco recently sold for just $250 each in auctions that would typically be considered a steal — except the lots are completely underwater. The 5,000-square-foot plots near Candlestick Point were purchased by hopeful investors during an auction on Tuesday, as reported by KGO-TV.
Despite the remarkably low price, the submerged land presents significant challenges. Owners would need to get creative with potential uses, such as filling in the land or building floating homes, both of which face legal and environmental hurdles. “I think part of it is just the supply and demand. We're not building enough. And lots of people have lots of money to be able to afford these houses,” said Linda, a Bay Area resident, to the TV station.
Mixed Reactions from Locals
While some see the underwater lots as potentially good investments, others are skeptical. Former San Francisco resident Sam Mitchell told the outlet, “That's a really stupid idea. Sea levels are rising so I don't know why you'd buy land underwater, but you never know. Someone will figure it out.”
The parcels were advertised as “an intriguing speculative investment” with possible uses including “future waterfront positioning, possible boat docking considerations, environmental or recreational applications, or strategic land banking,” according to SFGate.
Historical Context and Future Possibilities
Historian Chris Carlsson noted that while areas of San Francisco that were once water have been filled in historically, such a process would be nearly impossible to approve today due to legal and environmental factors. “It's just not going to happen,” he told KGO-TV.
However, some experts believe floating homes could be a viable option. Dr. Koen Olthuis, CEO of Waterstudio, an architectural firm specializing in floating structures, said, “Most of these locations, as long as they're not on open sea, but in this kind of, as in your place, Bay area, or in flood zones, or in rivers, or in canals, lakes, that's absolutely possible to use that as building ground to place floating foundations there and place units on top of it.”
Residents who purchased the plots may be gambling on future waterfront values in San Francisco. Similar opportunities have arisen before: a realtor bought underwater plots in 2021 with future development in mind, and in 2023, a man purchased a 10,000-square-foot lot in Alameda for $300,000, unaware it was underwater.
