Market Matters

Think California's housing crisis is tough in LA? Try Coachella. Source: KPCC Bob Soloman, head of UC Irvine Law School’s Community and Economic Development Clinic, commented the following about the housing crisis in the Coachella Valley: “Really, the housing shortage is abysmal. It’s worse than anything I’ve seen. […] Mobile home parks are springing up. But they’re springing up in fairly haphazard ways, they’re not well maintained. They’re often un-permitted." Many areas where working class families are living lack adequate electrical systems and waters systems, such as the trailer parks cited by Soloman. Blown fuses and dirty water in115 degree weather has made for poor living conditions for such residents, but due to a lack of housing options, poor families have been forced to make due. Read the full story   Do Home Builders Understand What Buyers Want?  Source: Wall St. Journal   Are home builders doing a good job of determining what home buyers want? Not according to Nela Richardson, chief economist for brokerage Redfin Corp., and Selma Hepp, chief economist for Zillow Group’s Trulia real-estate website. Richardson and Hepp noted that builders aren’t constructing enough entry-level housing to meet demand; instead, they are tailoring construction toward luxury buyers with ample credit. While builders may not be so sure about the financial prospects of entry-level buyers, the economists say this demographic has demand that is adequate and increasing. Read the full story HUD Secretary Op-Ed: Make Sure Every Child in America Can Chase Their Dreams Source: Quartz   Julián Castro, United States Secretary of Housing and Urban Development (HUD), is calling for greater investment in public schools, infrastructure, and housing in order to ensure that every child – no matter where they live or how much they earn – can make it in America. Castro notes, “We must promote smart, inclusive planning in every community. We can’t have one plan for the suburbs and another for cities. Instead, we must view our communities as connected, because they are.” The HUD secretary touts a new initiative that HUD is launching in partnership with the U.S. Departments of Energy and Education called “STEM, Energy, and Economic Development” or “SEED.” SEED will leverage federal investments and partnerships to connect public housing residents to energy-sector training and jobs. Read the full story      Bay Area Housing: Pay $900 a month to live in a tent near Google Source: SF Gate   In a sign of just how bad the housing market has gotten in the Bay Area, a man has offered a tent to rent in his backyard for $900 due to the lack of available rental options in the region. The owner stated, “It kind of is (outrageous). But maybe they should build more affordable housing in Mountain View." As a way to lure a renter for the tent, the owner advertised it as a "safe and friendly" neighborhood, "very close to Caltrain," and "in a beautiful garden."  Read the full story Poll: Housing Scarcity Concerns Surpass Water Worries in San Francisco Source: KQEDSan Francisco is the epicenter of housing concern for the whole Bay Area, as finding an affordable place to live ranked higher than worries about California’s extreme drought in the 2015 Bay Area Council Poll. More than three-quarters of Bay Area residents support building more low- to middle-income housing, and a growing number of people favor greater density in their neighborhoods if it would create more places to live. Bay Area Council President Jim Wunderman commented, “Water isn’t the only thing that’s in short supply in the Bay Area. We need a bold regional response to our historic housing crisis that is on par with the aggressive and immediate action we’re taking to combat the drought.” Read the full story Renting: Awful for just about everyone right now Source: Atlantic  Apartment vacancy rates are very low, thereby pushing up prices. Construction in many cities is still slow, as new tenants move in but few move out, which has resulted in high rental prices. For those who live in major metro areas, it’s become virtually impossible not to have one’s housing costs exceed about one-third of a person’s pay. As prices rise, even those who make median incomes are finding that their rent eats away at a more significant portion of their pay than it once did for those in the middle class. Complicating the problem is the fact that fewer households are making the transition from renting to owning, which means more competition for limited inventory. Read the full story