Advocates and members of the housing industry called for action, fiscal incentives and a re-branding of the message to solve California's housing crisis at a recent forum titled, "California Housing Crisis: Examining the Impact on the Bay Area." Held at LinkedIn Focus Center in San Francisco and hosted by the Bay Area Council and California Association of Realtors California Center for Real Estate, the forum featured two panels composed of members of the real estate industry, housing advocates, educators, and public officials.
A panel moderated by CA.R. President Geoff McIntosh discussed the impact of the housing shortage and its root causes, from the loud voices of NIMBYs ("No In My Backyard") who want to keep the status quo in communities where they live, to the high cost of housing construction and disconnect between the state legislature, regional and local municipalities.
To keep up with population growth, the state would need to build between 180,000 to 200,000 housing units and it is not happening. Carol Galante, faculty director of the Terner Center for Housing Innovation at UC Berkeley, said hurt most by the housing shortage are the middle class.
"We are hollowing out our middle class and middle class workforce," said Galante.
The housing shortage has had broad reaching economic implications for workers mega-commuting to jobs in the Bay Area from as far out as Stockton and Mendocino, some taking transit for two and a half hours each way. It is causing stress and health impacts on displaced families and children.
Fewer new people are moving to California and this is challenging employers. Katie Ferrick, director of community affairs for LinkedIn, said there has been a 17 percent decrease in the speed and velocity of hiring by employers. The Bay Area has dropped from the 10th fastest in hiring to 12th in a three-month time frame compared to last year.
"It takes $179,000 to afford a home in the Bay Area; most tech people don't make that," said Ferrick. This has led workers to migrate to less expensive areas like Seattle, Austin, Denver and Boston.
Ferrick said growth cannot be sustained without more housing in every level. "It's everybody's job that needs a home."
Jonathan Scharfman, general manager for developer Universal Paragon Corp., spoke of barriers to development, like the regulatory process and the cost of impact, utility and other fees, which can amount to $30,000 a unit in San Francisco, compared with $8,000 and less in other states. Then there is the "structural disconnect" in Sacramento and regional and local policy issues.
"Other states have coordinated state funded measures. We need it if we want to keep our competitive advantage," said Scharfman.
YIMBY Action executive director Laura Foote Clark said in passing Proposition 13 existing residents decided they did not want to pay more in taxes, so costs have been passed on to new construction, licensing fees, disincentivizing housing and exacerbating the problem.
"It's a collective action failure," said Foote Clark.
"We are so vastly out of sync with controlling government regulations," commented Galante.
The panelists said political will and mobilization are key to changing the housing situation. The message needs to be re-branded and a new vision created to push for benefits of growth. People need to be asked, "Do you want your kids, your grandkids to live here?"
Foote Clarke said the YIMBY ("Yes In My Backyard") movement is growing and action can be taken in many ways. She named different types of activists - the obsessives willing to attend lengthy council meetings, those sending emails to politicians, and those meeting with legislators to convince them of the need for policy changes.
"Realtors are a powerful political actor and can activate people to get this voice heard," added Foote Clark.
While local officials need to have the political will to make it happen, legislators need to address the issues by passing incentives, like redistributing sales and property taxes and distributing transportation dollars to communities that meet their housing goals.
"Clearly we need state leadership. Everyone wants to have local control, but there are things the locals (officials) won't be able to do. We have to give the locals cover so they can do the unpopular thing," said Galante. "We have to change fiscal incentives. We won't get there unless we do this."
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