A 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.
“Today, I am honored to present the state of our city,” Lurie said in his opening statements. “In 12 months’ time, we have become known around the world as a city on the rise. And that doesn’t happen without all of you.”
The 40-minute speech discussed the “meaningful progress” 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.
Members of the Board of Supervisors, Lt. Gov. Eleni Kounalakis, state Controller Malia Cohen, state Sen. Scott Wiener, former Mayor Willie Brown, and Lurie’s predecessor, former Mayor London Breed, were all in attendance.
“For the first time in five years, San Franciscans believe we’re moving in the right direction,” Lurie said. “That’s not spin. That’s not politics. That’s people feeling the difference in their everyday lives.”
A year marked by ‘cleaner, safer streets’ despite challenges
After the start of the COVID-19 pandemic, San Francisco became entrenched in a “doom loop” narrative, the idea that the city is on a downward spiral.
The city saw a rise in drug overdose deaths, homelessness, 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’s economic growth.
While some of those challenges remain, Lurie said in his address that 2025 was “the year that cleaner, safer streets helped San Francisco’s economy come roaring back.”
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 shift that coincides with the city installing speed cameras last year.
However, the number of drug overdose deaths remained largely the same compared to 2024, despite attempts to recalibrate the city’s response.
Lurie’s “Fentanyl State of Emergency Ordinance” 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’s harm reduction strategies through his “Breaking the Cycle” plan by limiting the distribution of drug use supplies.
“We combined nine different neighborhood outreach teams into one, breaking down silos and increasing shelter placements by 40%,” Lurie said. “We achieved a record-low number of encampments in December, down 44% from 2024.”
Economic recovery and federal pressures
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.
The AI boom 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.
“Nearly 1 million square feet of office space was leased by AI companies alone,” Lurie said. “Conference bookings are up nearly 50%, with companies like JP Morgan and Microsoft making multi-year renewals and commitments to come back to San Francisco.”
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.
For the first time in five years, San Franciscans believe we’re moving in the right direction.
Mayor Daniel Lurie
“We unanimously approved $3.5 million in additional legal defense funding for our immigrant communities during an unprecedented time of fear and insecurity,” he said.
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.
When President Donald Trump threatened to send the National Guard to San Francisco in October, he eventually backed down apparently after chatting with Lurie on the phone.
“This past fall, the progress we’ve made helped us prevent federal agents from taking over our city streets,” Lurie said as the crowd gave him a standing ovation.
Affordability and fiscal outlook
Lurie also discussed the actions he’s taken to try and help address the affordability crisis, such as getting his Family Zoning Plan 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.
“Affordability 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,” he said.
Last year, more than 1,000 affordable housing units were completed in the city, Lurie said.
Despite the year of improvements in certain areas, impending hurdles loom for Lurie, like the city’s nearly $1 billion projected budget deficit over the next two years, and the San Francisco Municipal Transportation Agency facing a financial crisis.
“I’ve instructed city departments that we are not going to spread ourselves thin by doing everything a little less well,” he said. “Instead, 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.”
Lurie ended his speech with a phrase he often repeats to his more than 200,000 Instagram followers — “Let’s go, San Francisco.”
“We will reclaim our place as the greatest city in the world,” he said. “We are just getting started, and we are not going to leave anyone behind. Let’s go, San Francisco.”