Re:California’s housing crisis: how a bureaucrat pushed to b...
by kelnos on Friday February 14, 2020 @04:40PM
(#22330673)
> the high-income and low-income housing markets are often effectively separate markets
That's certainly not true in SF. Housing quality certainly runs the entire spectrum here, but in the last decade I've seen low-income renters forced out of ok-ish buildings, and replaced with several high-income renters who do the roommate thing in order to afford it all.
Over time, even building "market rate" (which some people erroneously call "luxury") housing in SF will start to free up the older housing stock that's being occupied by people who in any other market would be considered high-income, and return that housing to its former middle- or low-income renters.
Regardless, with the exception of subsidized housing, it's not even possible to build low- or middle-income housing in SF right now. If you build anything at any size, it will immediately price out of budget for any low-income renters, and most middle-income renters. Part of that is just because landlords and sellers charge whatever the market will bear (which is a lot), and part is because new housing development gets so much opposition that it costs developers way more than it should to actually complete a project (it can take years and countless lawsuits and legal fees to even break ground), and they need to recoup their costs and make even a modest profit somehow.
That's certainly not true in SF. Housing quality certainly runs the entire spectrum here, but in the last decade I've seen low-income renters forced out of ok-ish buildings, and replaced with several high-income renters who do the roommate thing in order to afford it all.
Over time, even building "market rate" (which some people erroneously call "luxury") housing in SF will start to free up the older housing stock that's being occupied by people who in any other market would be considered high-income, and return that housing to its former middle- or low-income renters.
Regardless, with the exception of subsidized housing, it's not even possible to build low- or middle-income housing in SF right now. If you build anything at any size, it will immediately price out of budget for any low-income renters, and most middle-income renters. Part of that is just because landlords and sellers charge whatever the market will bear (which is a lot), and part is because new housing development gets so much opposition that it costs developers way more than it should to actually complete a project (it can take years and countless lawsuits and legal fees to even break ground), and they need to recoup their costs and make even a modest profit somehow.