![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/01\/BCN-20260115-STATEOFCITY-02.jpg\")
San Francisco Mayor Daniel Lurie delivers the state of the city address to a large crowd on Thursday, Jan. 15, 2026 in San Francisco, Calif. (Alise Maripuu\/Bay City News)<\/p>\nA SENSE OF OPTIMISM filled Angelo J. Rossi Park in San Francisco on Thursday as Mayor Daniel Lurie gave his first state of the city address to hundreds of local leaders, city workers, and first responders.\u00a0<\/p>\n
\u201cToday, I am honored to present the state of our city,\u201d Lurie said in his opening statements. \u201cIn 12 months\u2019 time, we have become known around the world as a city on the rise. And that doesn\u2019t happen without all of you.\u201d<\/p>\n
The 40-minute speech discussed the \u201cmeaningful progress\u201d the city has made in the past year since Lurie took office, he said, highlighting a range of actions the city has taken to address issues such as affordability, public safety, the economy, homelessness, substance abuse, and bureaucratic red tape.<\/p>\n
Members of the Board of Supervisors, Lt. Gov. Eleni Kounalakis, state Controller Malia Cohen, state Sen. Scott Wiener, former Mayor Willie Brown, and Lurie\u2019s predecessor, former Mayor London Breed, were all in attendance.<\/p>\n
San Francisco Mayor Daniel Lurie delivers the state of the city address to a large crowd on Thursday, Jan. 15, 2026 in San Francisco, Calif. (Alise Maripuu\/Bay City News)<\/p>\n
\u201cFor the first time in five years, San Franciscans believe we\u2019re moving in the right direction,\u201d Lurie said. \u201cThat\u2019s not spin. That\u2019s not politics. That\u2019s people feeling the difference in their everyday lives.\u201d<\/p>\n
A year marked by \u2018cleaner, safer streets\u2019 despite challenges<\/p>\n
After the start of the COVID-19 pandemic, San Francisco became entrenched in a \u201cdoom loop\u201d narrative, the idea that the city is on a downward spiral.\u00a0<\/p>\n
The city saw a rise in drug overdose deaths, homelessness<\/a>, petty crime, and traffic deaths. Several businesses and major tech companies left downtown, leading to a historic high in commercial property vacancies and less investment in the city\u2019s economic growth.\u00a0<\/p>\n While some of those challenges remain, Lurie said in his address that 2025 was \u201cthe year that cleaner, safer streets helped San Francisco\u2019s economy come roaring back.\u201d<\/p>\n Compared to 2024, the overall crime rate dropped by 25% in San Francisco, reflecting a downward trend seen nationwide. Traffic deaths also saw a dramatic decrease<\/a>, a shift that coincides with the city installing speed cameras<\/a> last year.\u00a0<\/p>\n However, the number of drug overdose deaths<\/a> remained largely the same compared to 2024, despite attempts to recalibrate the city\u2019s response.<\/p>\n Lurie\u2019s \u201cFentanyl State of Emergency Ordinance<\/a>\u201d helped accelerate the opening of beds for addiction and mental health treatment and the approval of contracts for organizations aimed at providing substance abuse treatment. He also shifted the city\u2019s harm reduction strategies through his \u201cBreaking the Cycle<\/a>\u201d plan by limiting the distribution of drug use supplies.\u00a0<\/p>\n \u201cWe combined nine different neighborhood outreach teams into one, breaking down silos and increasing shelter placements by 40%,\u201d Lurie said. \u201cWe achieved a record-low number of encampments in December, down 44% from 2024.\u201d<\/p>\n Economic recovery and federal pressures<\/p>\n Commercial vacancy rates remain high but saw a slight decrease to 33% in quarter four of 2025 compared to the 2024 high of 37%, according to CBRE, a global commercial real estate investment firm.<\/p>\n The AI boom<\/a> has drawn some tech companies to the city. While downtown is struggling to bounce back to its pre-pandemic glory, commercial centers like Stonestown Mall and Japantown are seeing increased foot traffic and revenue, according to Lurie.<\/p>\n \u201cNearly 1 million square feet of office space was leased by AI companies alone,\u201d Lurie said. \u201cConference bookings are up nearly 50%, with companies like JP Morgan and Microsoft making multi-year renewals and commitments to come back to San Francisco.\u201d<\/p>\n He also reflected on the challenges faced by the city as actions from the federal government trickled down into San Francisco, such when food benefits were suspended during the government shutdown and the city saw a rise in immigration officers conducting arrests of undocumented migrants.<\/p>\n For the first time in five years, San Franciscans believe we\u2019re moving in the right direction.<\/p>\n Mayor Daniel Lurie<\/p>\n<\/p>\n \u201cWe unanimously approved $3.5 million in additional legal defense funding for our immigrant communities during an unprecedented time of fear and insecurity,\u201d he said.<\/p>\n Through a public-private partnership, the city also committed $18 million in food assistance to residents who use food stamps after the Supplemental Nutrition Assistance Program was halted in November during the shutdown.\u00a0<\/p>\n When President Donald Trump threatened to send the National Guard<\/a> to San Francisco in October, he eventually backed down apparently after chatting with Lurie on the phone.\u00a0<\/p>\n \u201cThis past fall, the progress we\u2019ve made helped us prevent federal agents from taking over our city streets,\u201d Lurie said as the crowd gave him a standing ovation.\u00a0<\/p>\n Affordability and fiscal outlook<\/p>\n Lurie also discussed the actions he\u2019s taken to try and help address the affordability crisis, such as getting his Family Zoning Plan<\/a> approved to allow the construction of greater density housing on the western and northern sides of the city. Just this week, he launched an effort to make child care free for low- to middle-income families with children under 5 years old.\u00a0<\/p>\n \u201cAffordability has been a challenge in San Francisco for a long time, but as the federal government cuts support and drives up costs on everything from the price of groceries to insurance premiums and child care, the pressure is building,\u201d he said.<\/p>\n Last year, more than 1,000 affordable housing units were completed in the city, Lurie said.\u00a0<\/p>\n Despite the year of improvements in certain areas, impending hurdles loom for Lurie, like the city\u2019s nearly $1 billion projected budget deficit over the next two years, and the San Francisco Municipal Transportation Agency facing a financial crisis.\u00a0<\/p>\n \u201cI\u2019ve instructed city departments that we are not going to spread ourselves thin by doing everything a little less well,\u201d he said. \u201cInstead, we are going to prioritize and deliver better services in essential core areas that keep our streets safe and clean and continue to drive a city-wide economic recovery.\u201d<\/p>\n Lurie ended his speech with a phrase he often repeats to his more than 200,000 Instagram followers<\/a> \u2014 \u201cLet\u2019s go, San Francisco.\u201d\u00a0<\/p>\n \u201cWe will reclaim our place as the greatest city in the world,\u201d he said. \u201cWe are just getting started, and we are not going to leave anyone behind. Let\u2019s go, San Francisco.\u201d<\/p>\n \t![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/01\/BCN-20260115-STATEOFCITY-01.jpg\")
San Francisco Mayor Daniel Lurie delivers the state of the city address on Thursday, Jan. 15, 2026 in San Francisco, Calif. (Alise Maripuu\/Bay City News)<\/p>\n