About Us
FAQ
1. Why are most Californians struggling to find a place to live that they can afford?
California's housing market is broken. To put it in perspective, California's housing market is the equivalent of a grocery store that sells only fillet mignon and caviar or an auto dealer that sells only Mercedes Benz and Cadillacs. Our needs are too varied for such limited (and expensive) options. The lack of variety and choice in homes leaves most Californians struggling to find a place to live that they can afford.
2. Who is affected by the lack of affordable homes in California?We all are. Every day that we allow California's housing market to remain broken, we lose. We lose employers who can't retain good employees. We lose young families just starting out to other, more-affordable states. We lose new college graduates. We lose former foster youths to the streets and we lose productive, low-wage earners and their families to the growing number of California's homeless. It's a simple case of supply and demand. We see the demand for a greater variety of homes affordable at all income levels. What we need is the SUPPLY.
3. How much does a family have to earn in order to afford an average, market-rate, two-bedroom apartment in California?The average hourly wage needed to afford an average, market-rate, two-bedroom apartment in California is $22.86 (assuming 40 hours week/52 weeks year).
- Estimated, average hourly wage in California =$15.14
- Minimum wage in California = $7.50
The numbers clearly show how so many Californian's are priced out of the housing market, but it's the experiences of Californians from all walks of life that really tell the story.
4. Who is priced out of the housing market in MY community?You may be surprised to see who is priced out of the housing market in your area. View our CA County Fact Sheets to find out now.
5. What are the average wages and rents in MY county?The National Low Income Housing Coalition's annual Out of Reach report includes side-by-side comparisons of wages and rents in your county.
6. If housing prices are market-driven, what role does government have?We know the housing market is failing to provide variety and choice for Californians and we also know that significant amounts of private investment exist. What we need now is steady public investment. Developers are ready and willing to match public dollars with private dollars to increase affordable-home options. A reliable stream of state investment will ensure the housing market continually provides the variety and choices Californians need.
7. California voters approved bond monies, in 2002 and 2006, to make housing more affordable. How far will that take us and what happens when that money runs out?The voter-approved Housing and Emergency Shelter Trust Fund Acts of 2002 (Prop. 46) and 2006 (Prop. 1C) were good down-payments toward increasing the variety and supply of affordable homes, but eventually these funds run out. In order to create a permanent solution, we need a permanent source of funding for affordable homes. Housing California and its partners are working to identify a permanent source of funding. Without a permanent source, we find ourselves back at square one every few years.
8. What are some practical and economically feasible ways to make housing more affordable?Much of the skyrocketing expense of housing comes from government red tape and zoning barriers that prevent the private market from increasing supply. City councils and boards of supervisors could easily zone for all types of homes, including apartments, condos, and small for-sale homes, instead of just upscale high end units. By zoning for a wider variety and supply of homes local governments allow the private market to create everything from one-bedroom apartments for young college grads to for-sale homes that can accommodate large families.
In addition to reducing barriers, the state can create a permanent source of financing and incentives for the creation of affordable homes.
9. What is the "public-private partnership"?The "public-private partnership" is the combination of state (public) dollars and developer/financial institution (private) dollars. California's affordable-home development is considered one of the best examples of a public-private partnership and is a highly sophisticated model compared to the rest of the country.
10. How can government investment leverage greater public-private solutions?When the government invests money, developers (for-profit and non-profit) combine that money with private bank or individual investments to build permanently affordable places to live. The investment of government dollars provides developers the incentive to match funds and increase the much-needed supply of homes and apartments affordable at all income levels.
11. Why are today's affordable homes and apartments so much more attractive than what was built a few years ago?Today's affordable homes are carefully designed with community collaboration. As a result, today's affordable homes are attractive and in many cases the "best thing on the block."
12. Can the construction of a greater supply and variety of homes to meet community needs actually reduce crime?Yes. The construction of affordable homes, as a tool of economic development, often lowers crime rates. In fact, the National Crime Prevention Council calls for the construction of affordable homes and apartments to reduce crime because "neighborhood cohesion and economic stability are enhanced."
13. Who is likely to be helped the most with subsidized-housing policies?In terms of dollars, homeowners make up the largest group of those benefiting from federally subsidized housing. The largest subsidy for housing in the United States is the federal homeowner mortgage interest tax deduction which totaled $108 billion in FY 2003. This is more than three-and-half times the entire budget for the U.S. Department of Housing and Urban Development (HUD).
14. Homelessness seems like a problem almost anyone could face with a bit of bad luck or family crisis, who is most at-risk?Many men, women, and children find themselves homeless after unexpected life changes such as an illness or death in the family, a divorce, or a layoff. They, like you, never expected their lives could be so altered so quickly. But it happens and when it does, they quickly learn there simply aren't enough safe, decent, and affordable places to live.
Suddenly the job that used to make ends meet is no longer adequate and people who never imagined they could end up homeless find themselves in a shelter or on the street with no place to call home.
Others commonly at-risk of homelessness include:- Women and children escaping domestic violence.
- Foster youth who turn 18.
- Families with parents working low-income jobs.
- Men and women with disabilities or mental illness who don't have access to the resources they need.
- Men and women battling addiction.
- Anyone living paycheck-to-paycheck
121 is the number of hours a minimum-wage worker in California would have to work every week, 52 weeks a year, in order to afford California's average, two-bedroom, market-rate apartment. Sign up to receive Housing California e-mail, including 121.
