At a recent Silicon Valley Association of Realtors meeting, Silicon Valley Leadership Group president and CEO Carl Guardino touched on two major problems plaguing Silicon Valley - traffic and housing. Guardino presented data that shows traffic has increased 84 percent in the last 10 years and jobs have grown 29 percent from 2010-2016; yet, new housing stock has only increased 4 percent. He warned if these issues aren't resolved, Silicon Valley will lose its advantage over its competitors.
It is good news that the region's economy is robust and jobs have multiplied three-fold, but the low housing supply has forced people to live farther away in places where they can afford and commute many miles to and from work. California cities compete with each other for business because the state's tax law penalizes housing and rewards retail.
"Jobs need a place to go home to sleep at night," said Guardino. "We are not building homes in cities where jobs are."
Guardino indicated housing has suffered decades of neglect. The state has needed 180,000 units each year; yet, the state has only built 80,000 new homes. It is a "tragedy" that nearly 300,000 children in California attended school last year after sleeping in cars or being shuffled from shelter to shelter, said Guardino.
Austin, Tex., Boston, New York, Seattle, and Southern California cities like San Diego are getting an edge over Silicon Valley. Santa Clara County's median home price of $1.14 million, San Mateo County's median of $1.4 million, can't compete when the median home in Boston is a fourth that price for four times the home size.
Guardino indicated on the November ballot are four important housing bonds. Proposition 1 is asking voters to approve Senate Bill 3 - The Veterans and Affordable Housing Bond Act, a $4 billion bond measure which would help military veterans purchase homes and pay for affordable housing programs.
Proposition 6 seeks to repeal Senate Bill 1, which increases the gas tax to 12 cents a gallon and vehicle license fees; instead, it would require voter approval for future fuel tax and vehicle fee increases. Guardino opposes Prop 6 because it would eliminate funding for more than 6,500 bridge and road safety, transportation and public transit improvement projects currently underway throughout the state. He said there are over 1,600 bridges and overpasses structurally deficient or unsafe. Between San Jose and Oakland alone there are 80 miles of badly needed pothole repair. These projects would have to be postponed, costing taxpayers even more money.
Guardino opposes to Proposition 10, which seeks to repeal the Costa-Hawkins Rental Housing Act and allow local governments to adopt rent control ordinances. He said Prop 10 is a form of rent control, would stifle the construction of homes, and exacerbate the housing problem.
The SVLG head has not taken a position on Proposition 5, the California Association of Realtors Property Tax Fairness Initiative that seeks to expand Prop 60/90 benefits by allowing seniors to transfer their property tax assessments from their prior home to their new home anywhere in the state and as many times as they wish.
Google's expansion in San Jose is exciting people, said Guardino. A recent survey found majority of San Jose residents are in favor of the expansion. The project covers 240 acres of empty parking lots and warehouses. Plans include the construction of 2,600 new homes.
The propositions on the November ballot call attention to the underlying question: "As we grow our economy, how do we grow housing? For two and a half decades we have not done it in the state," said Guardino.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.