The Middle Class and Housing Affordability Crisis In The Bay Area As the lease of my apartment is coming to an end it had me thinking of achieving my own American Dream of home ownership but as I do my research I find the dream is far from coming true. I am sure that the issue of housing prices and rent rates are what most of us Bay Area residents talk about and debate. It is an issue that needs to be addressed by the officials of the area, city mayors, affordable housing committees, social justice activists,lawmakers, and even employers. Skyrocketing prices, low inventory, and investors’ bidding wars are not only pushing the middle and lower classes out of San Francisco and the Bay Area out but will completely eliminate them. It seems …show more content…
This high demand can be due to what many people call “historical low interest rates” as more people are interesting in home ownership especially young people to take advantage of these low rates. A prosperous tech industry in the area that keeps attracting highly skilled workers who earn higher than average incomes increases demand. In her article “Housing affordability crisis drives Bay Area middle-class exodus”, Mary Ann Azevedo explains that the Bay Area created 114,000 new jobs in 2014 and only 8,000 housing units. Azevedo further explains this low inventory, “The City of San Francisco is still producing only 2,000 housing units per year — when it has needed more like 5,000 for the last 20 years and going forward.” These statistics provide a clear picture of the seriousness of the situation and explains one of the major reasons that are driving the prices up with no sight of slowing …show more content…
This housing affordability crisis is stripping away it’s diversity at increasing rates and I feel that not enough is being done to restore it. Liz Pfeffer article “Is the Bay Area in a Housing Bubble or a Crisis?” describes the situation as, “San Francisco’s chronic problem is a lack of housing for middle and lower-income people. It’s not that they can’t afford it, it’s that it doesn’t exist”. Officials should collaborate on creating solutions to the root causes and offer alternatives that would release some of the pressure. I would suggest promoting micro-homes or smaller scaled homes, limiting foreign investors’s purchases of single-family homes, or expanding campuses of employers to areas that are not heavily populated. It is not too late to restore the balance but it will take collaboration and team work. I am urging these officials and activists to try and save the beloved culture of this area and help retain it as a place where social justice is recognized and
Lance Freeman tackles the issue of gentrification from the perspectives of residents in the gentrified neighborhood. He criticizes the literature for overlooking the experiences of the victims of gentrification. The author argues that people’s conceptions on the issue are somewhat misinformed in that most people consider it as completely deplorable, whereas in reality, it benefits the community by promoting businesses, different types of stores, and cleaner streets. These benefits are even acknowledged by many residents in the gentrified neighborhood. However, the author admits that gentrification indeed does harm. Although gentrification does not equate to displacement per se, it serves to benefit primarily homeowners and harm the poor. Additionally,
Although the recent tech boom in San Francisco has been blamed for the increased housing demand and the lack of affordable rental housing in the City, the reality is that the shortage of affordable rental housing been steadily climbing for the last 35 years. Rent control is oftenat the center of the controversy regarding the affordable housing shortage. In response to high inflation, and escalating rents, San Francisco’s Residential Rent Stabilization and Arbitration Ordinance was passed in 1979 (Forbes, Sheridan, 1999). Rent control imposes restrictions on landlords in regards to rent increases and evictions. It is estimated that seventy percent of San Francisco’s rental units are under rent control (Marti, Shortt, 2013). Because of the limited rent increases allowed, tenants living in these rent controlled apartments seldom move out, which severely impacts the vacancy rates in the City. Although the vacancy rate among rent-controlled units is extremely low, there are occasions when a tenant may vacate a rent control unit (a job out of the area, the decision to purchase a home, etc.). When a rent-controlled unit is voluntarily vacated, the landlord is allowed to raise the rent to market rates (this is called vacancy de-control); then the rent control annual increase takes effect on the new rent. A landlord will often raise the new rent to the highest possible price the market will allow, in an attempt to recoup the financial loss he is incurring on the units still under rent control. Because of the new higher rent, the previously affordable unit is no longer considered affordable; which then impacts the inventory of affordable housing in San Francisco.
According to John Vogel’s article “Thinking Outside the Housing Bubble” published in the US News, the housing area aids in job development and increases the opportunity for employment that will assist the United States in solving the recessi...
Gentrification is designed to improve the quality of life for the residents, but the fact is that it pushes out old residents to welcome in young and wealthy citizens. To analyze the demographic even further, gentrified neighborhoods in New York City have seen an increase in white population despite a city wide decrease. As Kate Abbey-Lamertz of the Huffington Post states, “The report notes that change is driven by educated people moving in, rather than by existing residents becoming more educated.” These changes are being driven by a millennial demographic who can afford the changed aesthetic. The influx of millennials are pushing out families whose lifestyle can’t keep up with the changing demographic. Even though these changes have been occurring for almost thirty years, and the city hasn’t made the changes needed for people who need low income housing. New York City’s gentrification must be slowed in order for people in low income housing to catch
The city of New York deserves not only affordable housing for the middle class, but more options for lower class citizens as well. There are several issues with affordable housing, one is there isn’t enough of it to go around and people are being forced into homelessness. This problem has put an even bigger strain on city social services, and there needs to be a solution implemented. The reason there is not enough affordable housing is the lack of real estate. This problem began when Giuliani was in office, he proposed a plan that would solve the city's property tax problem.
As the United States economy grows and technology advances, many areas such as San Francisco, Silicon Valley, and New York City embrace tech companies with open arms. However, it turns San Francisco, once an affordable place, into a luxurious and costly city for people who earn six digit pay checks. The Golden Gate City currently tops the chart for the most expensive homes in the nation. Even techies rent are increasing each month. The people moving into these cities are raising rental and property prices. The middle class is being squeezed out of their
Over the past two decades, California has been experiencing a shortage of affordable housing due to population growth, strict city planning, and zoning regulations. These factors contributed to a low market supply of available housing that resulted in an increase of housing prices in the state's major coastal communities, which have high population density.1 On average, housing prices are 2.5 times the median income, which forces many low-income families to spend more than half of their income on housing costs in the least expensive areas in the state.2 Housing affordability is a significant public policy issue because as housing costs rise, people experience higher levels of financial burdens that result in long-term economic instability and socially inequitable outcomes. There are three feasible alternatives to address the issue:
Quigley, J. M. (2002, April 3). A decent home: Housing policy in perspective, (pp. 53-99). Berkley, CA. University of California, Berkley Program on Housing and Urban Policy. Retrieved June 20, 2011 from http://escholarship.org/uc/item/8f57x42q
Gentrification is a highly important topic that has not only been occurring all over the United States, but especially closer than we may have thought. San Francisco is home to hundreds of thousands of people who have been a part of how amazing this city has become. San Francisco is one of the most visited places in the world with many of its famous landmarks, endless opportunities not only for daytime fun but also has an amazing nightlife that people cannot get enough of. People come for a great time and could not be done without the help of the people who have grown up to experience and love this city for what it truly is. The cost of living in such an important city has definitely had its affect of lower income San Francisco residents. For decades we have seen changes occurring in parts of San Francisco where minorities live. We have seen this in Chinatown, SOMA, Fillmore district, and especially the Mission district.
Facebook made a $20 million donation to fund affordable housing, and job training in Silicon Valley to create close partnership with the residents, and to ease the tension between technology firms and local tenants, especially in East Palo Alto, which 16% of residents live in poverty. However, due to the rising construction and living cost in the area, more public funding is needed in order to put an end on the housing
According to a recent report by the state’s nonpartisan Legislative Analyst’s Office (LAO), whereas the average American home costs $180,000, the average California home costs $440,000, or 240 percent more than in the rest of the country, up from 30 percent more in 1970 and 80 percent more in 1980” (1 Gaarder). The LAO, a highly recognized organization, believes that California’s housing is too expensive as well. Shown in the data, normal housing across America is a decent price. But when it comes to California, things get out of hand. It actually costs 240 percent more to live in California than in any other part of the United States. Observing L.A’s metro area, the stock of housing increased by 20% from 1980-2010, compared with 54% in other U.S. metropolitan areas (1 Welch). When a good becomes overpriced, there is less of it bought. This is what is happening to California’s housing, they are in a state of supply and demand. California has a definite problem with affordability and people aren’t able to live the
As the cost of living rises in the San Francisco Bay Area, more families are struggling to put nutritious food on the table. Residents in the Bay Area spend a little more than half of their household earned income on rent, leaving a small budget for food, utilities, and basic needs. Children from low-income families in the Bay Area rely on getting their next meal from subsidized school lunches. Students should look forward to going to school to learn, not for their next meal.
The Oxford English dictionary defines denial as the 'refusal to acknowledge an unacceptable truth'. It is, in other words, the disquieting ability to continue to believe something despite the evidence pointing to the contrary. Sound familiar? Well it should do; because nobody does denial like Irish policy makers do denial.
Affordable housing in the United States describes sheltering units with well-adjusted housing costs for those living on an average, median income. The phrase usually implies to applied rental or purchaser housing within the financial means of lower-income ranges specific to the demographics of any given area. However, affordable housing does not include those living in social housing owned by government and non-profit organizations. More specifically, the targeted range for housing affordability sets below 30 percent of a household's annual income, including all applicable taxes, utility costs and home owners insurance rates. If the mean income per household breaches the 30 percent mark, then the agreed status becomes labeled as "unaffordable" by most recognizable financial institutions.
Buying and owning your home is part of the American dream. Although the dream itself has since changed, the home still remains the main focal point. Today owning a home doesn’t necessarily mean a house. People now buy duplexes, cooperative apartments, and condominiums. For some families it could take up to a couple of generations before it’s able to have the capabilities of buying a home. To many people it means a certain achievement that only comes after years of hard work. It is a life altering decision and one of the most important someone can make in their lifetime. The reasons behind the actual purchase could vary. Before anything is done, people must understand that it’s an extraneous process and it is a long term project.