SACRAMENTO (May 20) – As home prices in California continue to set record highs, and only one in four Californians able to afford to buy the median-priced home, a coalition of REALTORS®, homebuilders and affordable home producers have joined together to urge the state to invest in new housing supply to address severe disparities in homeownership and reverse decades of exclusionary housing policies.
“California desperately needs more housing to meet the needs of diverse middle-class and low-income Californians,” Dave Walsh, President of the California Association of REALTORS® (C.A.R.), said at a virtual press conference. “With a historic budget surplus, now is the time to address the racial divide in homeownership and fix California’s severe housing shortage.”
C.A.R., the California Building Industry Association (CBIA) and Habitat for Humanity California are urging the Legislature to make additional investments in this year’s state budget that encourage new housing for homeownership. The group called for these investments as California’s median home price surged to a record $813,980 in April and housing production stalled for the second straight year in 2020.
“This is about more than just housing; it’s about equity and access to homeownership for all Californians,” said Maureen Sedonaen, Chair of the Board of Directors for Habitat for Humanity California. “More than 80 percent of the families we serve through affordable homeownership at Habitat for Humanity are from communities of color. By making smart investments that pave the way for the planning and construction of new homes, we can put homeownership in reach for those who have been historically priced out of the market and for a whole new generation of Californians.”
Homeownership is key to building generational wealth and helps to stabilize communities. But homeownership rates are at their lowest in California since the 1940s, and there’s significant disparity in homeownership. Black and Latinx Americans are twice as likely to rent as white Americans.
“To achieve the housing we need, our state must make the investment in creating housing opportunities for working Californians to access all forms of stable homeownership,” said Michael Gunning, Senior Vice President of Legislative Affairs for CBIA. “To close the racial homeownership divide, we must address segregation caused by explicit historic government policies at the local, state, and federal level. It is time for California to lead through action in Sacramento to address these painful truths about past housing policies and create a new housing future that works for everyone. That can start with the budget investments we’re calling for today.”
Of the $9.3 billion allocated to housing in Governor Newsom’s proposed May Revise budget, only $725 million, or less than 8 percent, goes toward expanding homeownership opportunities with programs such as down payment assistance.
The current budget investments do nothing to address the housing shortage or bring down costs, leaving low- and moderate-income residents without any options in their price range. Investments must also be made to construct new owner-occupied units accessible for all income levels. The group called for additional critical budget investments to include:
- Approving matching grants and tax credits to complement those proposed by Biden’s Administration. These grants will help local governments plan and implement housing programs, while providing tax credits to developers constructing affordable units. California must not limit its tax credit programs to rental housing and must assure we equally encourage the construction of owner-occupied units.
- Funding a tax credit for working families who are first-time, low- and moderate-income homebuyers.
- Creating parity in state funding programs to assure that the construction of homeownership housing is given equal consideration. We cannot focus all of our resources on the development of rental housing if we are going to help working Californians, including those from traditionally financially disadvantaged communities, buy homes and close the wealth gap.
“This is about the future of our state. This is about keeping more Californians from being cost-burdened and falling into homelessness,” Walsh said. “It’s about creating true housing equity for all Californians. Let’s come together to prioritize more ownership housing — it’s the right thing to do to ensure the American dream of homeownership doesn’t slip away for Californians who call the Golden State home.”
About the California Association of REALTORS®
Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
About Habitat for Humanity California
Habitat for Humanity California is a statewide coalition of independent Habitat affiliates that serve communities across California. Habitat affiliates bring people together to build homes, communities, and hope. Habitat California advocates for affordable housing with specific focus on homeownership opportunities for families with limited-incomes.
About California Building Industry Association
The California Building Industry Association is a statewide trade association based in Sacramento representing thousands of member companies including homebuilders, trade contractors, architects, engineers, designers, suppliers and industry professionals in the homebuilding, multi-family and mixed-use development markets
12 comments
Gee, do you think there could be a bit of self-interest involved in realtors/builders et al advocating state “investment” (that’s code for our tax dollars) in more housebuilding?
There is a shortage of “ diverse” people willing to work and buy a home like everyone else does . More catering to the leeches of society.
It’s the realtors who are driving the prices of houses up so high that even people earning good money cannot afford them. A friend, who has several houses, wanted to sell one of them, called a realtor and said she wanted $100K only as profit over the price she bought it for in 1990. The realtor had a fit and insisted that the price of the house should reach astronomical proportions because it was a seller’s market. My friend said no and she also wanted to OK who the buyer would be no matter what they offered over the asking price. Needless to say, my friend did not sign up with that realtor.
Bob, I know of several instances like that. The realtors went bananas.
It’s the realtors who are jacking up the cost of houses here. A seller may have a certain price in mind, but the realtor insists the price could be higher and higher which results in a bigger commission for them. I never use realtors because I want to control my sales price and also choose the people I’m going to sell it too and I’m not greedy.
The minute “affordable” housing is built, it becomes a magnet for criminals and potential criminals moving in. I don’t care if it’s Jimmy Carter’s Habitat for Humanity or anyone else! “Diversity” equals problems and always has.
Someone should tell Michael Gunning that the states had historical government policies for a reason. Look what happened to Oakland after WW2! A disaster!
I don’t want any affordable housing build close to where i live. I’ve seen what happens to a neighborhood when those are built and occupied. If people cannot afford to live in California, there are 49 other states which might suit them better in terms of cost of living and housing.
I have properties in another state in neighborhoods which are established and free or crime .. then some do-gooder decided that the 4 acres of vacant land in the area should be earmarked for “low income” housing. Well, that went over like a cold turd! However, she sold it to a developer with the stipulation that low cost housing would be constructed. Afterwards, the neighborhood Safeway which was open 24/7 shut down at 11 pm thanks to these new residents stealing meat and liquor when there were only 2 cashiers working. Also, items were stolen out of people’s garages and cars were broken into. So much for low-cost housing and whom it attracts.
Yes! Someone should tell these “diverse” people that if’s amazing if they stay in school, don’t join gangs, apply themselves, get enough training to get a job and be on time. It’s amazing how much they can gain and not be stuck in some “low income” development full of problems. Works every time. They might try it just for the hell of it.
Meanwhile, I have no use for greedy real estate agents who are responsible for the state of affordable housing today.
Please, if there is a God … let him keep real estate agents away from me. I detest them! Now, about this “close the homeownership equity gap” shit. Remember how in the 2008 and 2009, people who were given loans didn’ pay their mortgages? Remember, who they were? 99.99% were the comprised of the diversity crowd. . . the so-called “people of color.”
I just heard a commercial on radio promoting some greedy real estate agent claiming “she will get you the top dollar” and “she will get you buyers for a higher price than anyone else.” Then people wonder why so many here are homeless, cannot afford even the rent let alone buy a house. These realtors are cockroaches.
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