Economic Context of California’s Affordable Housing Shortage
As California’s population nearly doubled over the last three decades, the state’s ability to develop affordable public housing has not grown nearly as fast (Governer's Budget Summary 17-18, 2017). Approximately 1.7 million of very-low and low-income households are in the urgent need of subsidized housing because they spend more than one-third of their income on housing costs in the least expensive areas across the state (Mac, 2015). Experts argue that some key factors such as lack of supply, demographic shifts, and NIMBYism led to higher demand for rental housing and single-family homes that spiked the housing costs across all regions in the state (Mac, 2015). In this section, I define and frame the shortage of affordable housing within the context of California’s economy.
California’s Coastal vs. Inland Growth …show more content…
Between the 1980s and 2012, California's coastal metros increased by 32%, ranking below the national average of 54%. In areas of Los Angeles and San Francisco, home building grew only by 20%, which led to high property values in those coastal areas (Mac, 2015). Similarly, the land prices on the California’s coast are much higher than in California inland regions, which explains the increased housing developments in inland regions between the 1980s and 2010 (Mac, 2015). However, the coastal areas accounted for 75% of California job growth between 1994 and 2005 (The California Budget Project, 2007). As a result, the influx of new workers created an urgent need for affordable and public housing due to the housing costs and low wages in the coastal areas (Walters, 2015). However, there are many challenges for developing affordable housing units in coastal areas due to cost and community
As California’s population nearly doubled over the last three decades, the state’s ability to develop affordable public housing has not grown nearly as fast (Governer's Budget Summary 17-18, 2017). Approximately 1.7 million of very-low and low-income households are in the urgent need of subsidized housing because they spend more than one-third of their income on housing costs in the least expensive areas across the state (Mac, 2015). Experts argue that some key factors such as lack of supply, demographic shifts, and NIMBYism led to higher demand for rental housing and single-family homes that spiked the housing costs across all regions in the state (Mac, 2015). In this section, I define and frame the shortage of affordable housing within the context of California’s economy.
California’s Coastal vs. Inland Growth …show more content…
Between the 1980s and 2012, California's coastal metros increased by 32%, ranking below the national average of 54%. In areas of Los Angeles and San Francisco, home building grew only by 20%, which led to high property values in those coastal areas (Mac, 2015). Similarly, the land prices on the California’s coast are much higher than in California inland regions, which explains the increased housing developments in inland regions between the 1980s and 2010 (Mac, 2015). However, the coastal areas accounted for 75% of California job growth between 1994 and 2005 (The California Budget Project, 2007). As a result, the influx of new workers created an urgent need for affordable and public housing due to the housing costs and low wages in the coastal areas (Walters, 2015). However, there are many challenges for developing affordable housing units in coastal areas due to cost and community