Affordable Housing: Is It Possible to Create in S.F.?

Dear Lisa,

  Thank you for injecting some economic common sense into a paper that normally sees little of it ("Affordable Housing: Is It Possible to Create in S.F.?" October 2007 Mission Dispatch, p. 10).

  I hope you will keep up the good work, and perhaps even dare to speak the unspeakable -- that there in fact *is* a clear answer, namely less government. Most of the economic problems *and* the social problems in San Francisco can be traced to an excess of government control, whether it is increasing the cost of housing via an excess of building codes, zoning laws, environmental laws, and so on, or increasing violence via a "War on Drugs," bans on firearms ownership, government schools that fail to provide a decent education, and other causes of violent crime.

  If you would like to speak with me as part of the research you mention intending to do over the next few months, I would be happy to go into more detail.

Love & Liberty,
        ((( starchild )))
  Vice-Chair, Libertarian Party of San Francisco
            (415) 621-7932

From http://www.missiondispatch.com/news/view_article.html?article_id=5c5c681079073e23a34e0a46c71ed039 :

Affordable Housing: Is it Possible to Create in S.F.?
By Lisa Thompson, Realtor, Aug 14, 2007
About a year ago my good friend gave up on San Francisco. For a single mom, the challenges associated with the high cost of living proved to be too much. So she packed up and moved to Portland, Oregon. I just returned from a visit with her a couple of weeks ago in the Portland neighborhood of Sellwood where she lives. She and her daughter walk tree-lined streets dotted with early 1900s bungalows to pick up fresh fruits and veggies, sip a latte or chat with the local merchants. Being a Realtor, these adorable (and seemingly affordable) little homes piqued my interest. “How much could you get one of these for?” In Portland, the ratio of homeowner to renter is something like 65% to 35%. While appreciation has accelerated over the past 10 years, you can almost buy 2 houses for the cost of a condo in San Francisco! But is it affordable?

What makes housing affordable?

I recently read that 84% of Californians cannot afford to purchase a home in the community in which they live. This is a statewide statistic. Sad? Yes. Surprising? No. Housing, whether you agree or not, has become a commodity. Sure it provides basic shelter, emotional and financial statbility, a connection to the community, etc., but the issue of affordability is centered around the basic economic principals of supply and demand. Over the past 20 years, California has not kept up with the demand. This is statewide. The issue in San Francisco is magnified due to our city governement, planning restrictions, rent control, neighborhood organizations, and, most importantly, lack of buildable sites. Simply put, we don't create enough product for a growing demand so availability is shrinking, prices are rising and quality is diminishing.

What’s the Solution?
Identifying the affordability problem is simple. Unfortunately finding the solution isn't. Is the lack of housing the root cause of other social issues that challenge us or are the social issues the cause of the housing affordability problems? I am not sure there is a clear answer, but we have to start somewhere.

Affordable housing benefits everyone! As a Realtor, I work a lot with first-time home buyers who work and want to live in San Francisco. While most are 2-wage earners, affordability is an issue when you pay upwards of 40% of your annual income for housing. Over the next few months I will be researching housing affordability in SF and will be sharing my findings with you in this column. I will be speaking with for and not-for profit housing developers, city officials and citizens (to name a few) and I welcome you to contact me with your concerns, questions and ideas for solutions. Until next month...

Lisa Thompson
Since 2002, Lisa Thompson has successfully guided clients throughout the Bay Area to make thoughtful, well-informed decisions about buying and selling real estate in today’s complex marketplace. Working with Paragon Real Estate Group, she offers unique expertise as the resident expert on renovation and relocation with an impressive network of professional resources. Trained in architecture, Thompson has more than 18 years of practical experience in design, business and marketing. She works from the Paragon office on Redwood Street and is available by calling 415.701.2605, or email at lthompson@paragon-re.com. For information on Paragon, visit www.paragon-re.com.

Starchild,

Excellent letter!

All the best,

Don Fields