HOUSING SUPPLY CRISIS
Housing Supply Crisis
The San Diego region and California are beautiful places to live and as a result, have always had higher homes prices, affectionately known as the “Sunshine Tax,” than other parts of the US.
Over the years, the region’s population has grown, yet the supply of housing has not kept pace. We are now left with a housing supply crisis.
According to our regional planning agency, SANDAG, the region needs to add approximately 12,000 housing units annually to keep pace with population growth. For the past decade, housing starts have fallen woefully below this threshold.
The lack of housing supply is exacerbating the cost of housing in San Diego, California, and across the nation. In 2016 the issue garnered attention not only at the local level, but also from Governor Jerry Brown, the Obama Administration, and from several research entities.
See the links below for various reports, toolkits, articles and more on this hot topic! SCRHA supports concepts that will help streamline the development process, reduce community opposition to development, and reduce the cost of building, without placing constraints on the free market and limiting private property rights.
The Southern California Rental Housing Association strongly supports the development of new housing of all types and at all price points. Our region, California, and the nation has a deficit of housing. This has led to increased prices. The only real way to control costs going forward is to meet demand! That is why SCRHA has joined the Housing You Matters Coalition and is supporting policies at all levels of government that help streamline housing development, remove the barriers to housing construction, and lower the costs to build which ultimately are passed along to renters and buyers.
We urge our state and local governments to look at ways to add housing units by reducing regulatory barriers and fees as well as addressing factors that contribute to time delays, which increase costs.
Click here to see examples of the policies the City of San Diego is considering to help address the supply crisis.
- State housing legislation: Enough done?
- Gloria bill to spur production of middle-income housing in San Diego signed by Gov. Brown
- Demand for Multifamily is High in San Diego, Yet it’s a Challenge to Develop More
- Does rent control impact crime rates? These economists have the answer…
- Labor got higher wages in California’s housing deal. Will affordable homes still be built?
- Ontario (Toronto) lost 1,000 planned rental units since new housing rules introduced:report
- California’s housing problem still a crisis despite major bills Legislature approves
- State lawmakers advance major housing bills, including a $75 fee on refinancing
- How Local Housing Regulations Smother the U.S. Economy
- To solve California’s housing crisis, shift some power over land use away from local governments
- Will California politicians really address housing crisis or settle for tokenism?
- A “deal” on cap and trade and housing won’t solve the housing crisis unless it reduces development costs
- What housing crisis? Last-minute bill would let wealthy Marin County limit home building
- Report: San Diego Needs 73K New Apartments By 2030 To Meet Demand
- Opinion: Housing is best governed by laws of the market
- Rent Control’s Failure
- California’s Legal Assault On NIMBYs Begins
- Ontario (Toronto) supply already reeling from the impact of new rent-control rules
- Showdown Looms as Rent Control Battle Rages
- The largest effort to expand rent control in decades is on hold in Sacramento
- Rent control no answer to California housing crisis
- Are your housing costs sky high? A new fight over California rent control is coming
- L.A. to Worsen Housing Shortage with New Rent Controls
- Rent Control Would Put Housing Out of Reach for More Californians
- Addressing The Housing Affordability Crisis: San Diego Housing Production Objectives 2018-2028 – San Diego Housing Commission
- Opening San Diego’s Door to Lowering Housing Costs – Fermanian Business & Economic Institute at Point Loma Nazarene University.
- Addressing The Housing Affordability Crisis – San Diego Housing Commission
- Location Matters: Affordable Housing & VMT Reduction in San Diego County – San Diego Housing Federation
- Governor Brown’s “By-Right” Plan
- SDCAA Letter in Support of Governor’s “By-Right” Plan
- Housing Development Toolkit – The White House
- Closing California’s Housing Gap – McKinsey Global Institute
- 2016 Roadmap to Shared Prosperity: The one million challenge – California Economic Summit
- Mission Impossible? Meeting California’s Housing Challenge – Southern California Association of Governments
The following represent the core laws and policies that impact rental housing.
Costs-Hawkins Rental Housing Act
Passed in 1995, Costa-Hawkins places statewide limits on local rent control ordinances. Local rent control laws generally cannot apply to units built after 1995 and cannot apply to single family homes and condos. Additionally, Costa-Hawkins provides landlords in rent control areas with “vacancy decontrol,” meaning a landlord can set the initial rent once original tenants vacate a unit.
The Ellis Act exists to assist property owners in rent control areas exit the rental housing business. Typically, local rent control regulations place limits on how much a landlord can raise rent each year. This can become financially burdensome to many owners who may find themselves losing money on their investment. The Ellis Act provides a means to exit the rent housing business and help property owners avoid financial ruin.
Fair Housing Laws
Property owners and managers, as well as their staff, should be well versed on both Federal and California Fair Housing Laws. These laws protect people from discrimination when they are renting, buying, or securing financing for any housing. Federal prohibitions specifically cover discrimination because of race, color, national origin, religion, sex, disability and the presence of children. State Fair Housing covers age, race/color, ancestry/national origin, religion, disability/ mental or physical, Sex/gender, sexual orientation, gender identity/gender expression, genetic information, marital status, familial status, and source of income.
If you do some research you will see that almost all economists and researchers agree that rent control is a flawed policy for many reasons. Here are some of the top reasons why rent control does more harm than good.
- Rent control is not based on need. It is based on luck…where you are at the time it is implemented. There is no means testing, meaning those who need it the most often do not benefit from it.
- Those with rent controlled units are far less likely to move, even if their income improves, making available units harder to come by and pushing prices up further for those that are available.
- Rent control often deters new construction, exacerbating existing supply issues.
- Artificial price controls on property owners often lead to less money for owners to reinvest in their properties. Much of the housing stock throughout the nation was built prior to 1980, meaning that these properties will need maintenance and upgrades in coming years. Rent control directly impacts a property owner’s ability to do such rehab.