How California's State and Local Governments Are Addressing The Affordable Housing Crisis

Bisnow published an insightful article that touches on the ongoing yet sensitive subject of California's affordable housing crisis, a crisis that is threatening the economic vitality of the state.

"Affordable housing is being addressed to some extent, but we have a huge supply constraint in Los Angeles that's driven by multiple factors. But the long and short of it is we have more demand than we have housing supply. It's driven up the cost of housing, and it's created a pretty dramatic affordability crunch." said Paul Habibi, a continuing lecturer of finance and real estate at UCLA.

Habibi continues to add that the most effective way to address affordability is to build more housing of all types, affordable, workforce and market-rate, to create less upward pressure on rents. The California Department of Housing and Community Development reports that California's housing production has averaged less than 80,000 new units annually over the last 10 years and current production continues to fall. 

Matt Regan, Bay Area Council Senior Vice President Public Policy states that "people fail to understand how transportation and traffic works." Supporting the evidence that former residents have been priced out of the Bay Area, with homes now priced two and a half times more than the national average. As a result, about 170,000 people now drive into the nine-county Bay Area from as far away as Stockton, Tracy and Manteca, which is causing a lot of congestion.

In Los Angeles, Mayor Eric Garcetti recently proposed a linkage fee that imposes on projects proven to boost housing demand, a fee that could bring in $100M annually according to estimates.

To read the full article on Bisnow, click here

 

About Bisnow
Bisnow is an intensely curious company on commercial real estate. Their journalists write about the hottest trends, transactions, personalities, and happenings in all metro areas. Learn more about Bisnow here.
 

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