The Center for California Real Estate, an institute of the California Association of Realtors, hosted its flagship event of the year, the "CCRE Housing Summit: Charting California's Future," in Los Angeles on Oct. 30. The Summit brought together thought leaders from government, business, and academia to address the most pressing challenges facing California's housing market.
"We have a long road ahead of us," said keynote speaker Toni Atkins, Senate President Pro Tempore Emeritus. She pointed to the need for greater housing affordability and accessibility and removal of loopholes blocking homeownership. Atkins championed the California Dream for All program which has helped 4,000 buyers purchase their first home.
Here are some takeaways from speakers and panel discussions that focused on core themes: analyzing the current state of homeownership, exploring broad strategies for enhancing housing supply, and considering policy and political strategies to address current housing demands:
Dr. Douglas S. Diamond, Nobel laureate economist and professor of finance at the University of Chicago, traced the history of the 30-year fixed-rate mortgage. Diamond argued that the 30-year FRM is "toxic" when combined with inflation. He urged a re-consideration of short-term mortgages, which are common in the rest of the world.
During a panel on the State of Homeownership: Trends, Challenges and Opportunities, California Housing Finance Agency Executive Director Tiena Johnson Hall argued, "We generally think the greatest threat to homeownership is supply, but in reality, it's racial disparities. It is increasingly difficult for people who identify as Black, Brown or even Asian to receive the funding to buy a home…. When we create opportunities via things like down payment assistance, that tends to change the cycle."
Dr. Stuart Gabriel, director of the UCLA Ziman Center for Real Estate, encouraged attendees to "turn over every rock and stone to provide more housing and more access to housing."
At the panel on Building Tomorrow: Housing Supply Barriers and Solutions, president and CEO of the California Building Industry Association Dan Dunmoyer pointed out that the metroplex of Houston, Texas built more housing last year than the entire state of California did, despite California's urgent housing crisis, mostly due to California's burdensome regulatory fees and requirements.
Recent changes in state law have reduced some of the red tape for building affordable housing, but more change is needed. San Francisco Bay Area Planning and Urban Research Association Chief Policy Officer Sujata Srivastava proposed that the state develop financing options for multifamily developments.
The final panel of the day featured a lively discussion on Shaping Policy: The Dynamics of Housing and Politics in California. California Business, Consumer Services and Housing Secretary Tomiquia Moss explained that the housing crisis impacts every aspect of people's lives, including access to education and healthcare.
LA Business Council President Mary Leslie said although the city is halfway through the units it needs to build to meet the RHNA goal, local political will needed to finish might not exist.
Sacramento Mayor Darrell Steinberg countered that housing is a fundamental right and until we overcome the demand for local control and make housing a national priority, the dearth won't be fixed.
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