“Homelessness has been a challenge in San Francisco for as long as I can remember. But fentanyl changed everything and caught our city flat-footed,” Lurie said. “Under my administration, we have changed our approach. We stopped freely handing out drug supplies and letting people kill themselves on our streets. It is not a basic right to use drugs openly in front of our kids.”
The city is currently working to open a facility, called a RESET Center, staffed by law enforcement and health workers, to provide an alternative to jail and emergency room beds for people struggling with addiction.
Those changes to street conditions, Lurie said, have helped draw businesses and conferences to the city, and encouraged other major events, like a Dead and Company concert series over the summer and the recent announcement that Vanderbilt University will open an outpost in San Francisco on the California College of the Arts campus after it closes next year.
“Foot traffic is expanding from Japantown to Stonestown,” he said, referring to bustling shopping centers. Lurie did not, however, mention the empty San Francisco Centre mall on Market Street, which has remained a sore spot for downtown recovery advocates.
Despite major fundraising efforts by groups like the nonprofit Downtown Development Corporation and boosts from Lurie’s philanthropic ties as founder of the Tipping Point Community, many storefronts remain empty downtown.
“Downtown is the centerpiece of our recovery,” he said. “Yes, we are on the way back. But we still have work to do.”
San Francisco Mayor Daniel Lurie gives remarks during a State of the City address at Rossi Park Ball Field in the Richmond neighborhood of San Francisco on Jan. 15, 2026. (Beth LaBerge/KQED)
A big part of that work ahead, Lurie said, is continuing to make the city more affordable. He underscored the need for MUNI and BART funding, accessible City College programs and streamlined permitting for small businesses.
“I spent some time last week with the members of Local 38. One of the plumbers—a guy born and raised in San Francisco—he’s got two kids, loves the city, loves his job. He came up to me and said, ‘We couldn’t make it work. Now, I’m commuting over an hour each way five days a week. What has to change so families like mine can live here?’” the mayor shared.
The city is expanding child care subsidies, and Lurie pointed to efforts to add affordable housing across the city. One of his key legislative wins so far was passing a controversial rezoning plan that allowed for taller and denser buildings across the city.