California’s high housing costs mean more than 80% of families can’t afford a median-priced home in this state, where the price tag hovers around $900,000, the president of the California Association of Realtors said during a forum with several of the candidates for governor.
As a result of being forced to delay their dreams of homeownership as they scrimp to save for a down payment, the average age of first-time home buyers in this state is approaching 40 years old, she said.
RELATED: Mahan: The key to lower cost housing in California is building at a lower cost
“For generations, home ownership has been central to the California dream. And that’s because home ownership matters,” said Tamara Suminski, president of the California Association of Realtors. But, she continued, “too many Californians no longer believe that they can be a part of that dream.”
Multiple candidates for California governor convened on Thursday, March 5, in Sacramento to talk about one of the issues that’s top of mind for many voters: home ownership.
The candidates who participated were former U.S. Health and Human Services Secretary Xavier Becerra, San Jose Mayor Matt Mahan, former Rep. Katie Porter, Rep. Eric Swalwell and former Los Angeles Mayor Antonio Villaraigosa. Also joining the conversation was former Fox News host Steve Hilton, the lone Republican on the panel.
Two other candidates, Riverside County Sheriff Chad Bianco and environmental advocate Tom Steyer, were also invited, according to organizers. Steyer’s campaign said he missed the forum due to a scheduling conflict. Bianco’s campaign did not respond to a request for comment about his absence.
The candidates who participated in the forum often agreed, at least in concept, on a number of solutions for making housing affordable, expediting construction of new homes and providing insurance to homeowners.
Below, we highlight some of their remarks.
Xavier Becerra
If elected, Becerra said, he’d put a call out to all developers with projects that are nearly “shovel-ready” to contact him so that as soon as he’s sworn in, he can deal with whatever issues are hindering them from breaking ground.
It’s critical, he said, for Californians to see that homes are actually getting built so there is optimism that they may soon join the ranks of homeownership.
“If they see that there’s actually something being constructed, they’re going to feel that they have an opportunity to be one of those purchasers,” he said. “So first, shovel in the ground. Let’s prove to Californians we’re actually going to build.”
He said it’s important to build both single- and multi-family housing and for policies to keep Wall Street investors from bidding against first-time homebuyers.
He also proposed paying workers who build modular homes “a decent wage,” and said he would back a program to help teachers, firefighters, police officers and nurses purchase a home.
Steve Hilton
Hilton, who said his step-father was a general contractor and his first job was a project manager for a construction company, challenged the notion that California has run out of land on which to build. The state spans more than 160,000 square miles yet, according to Hilton, just 8,000 square miles are developed. Building on another 10,000 square miles would provide housing for 10 million people, he said.
“We’ve got to allow ourselves to build outwards, not just upwards, and we’ve got to end the bias against single-family homes,” he said.
Hilton took issue with some of the state’s climate policies and agenda, saying it has hindered housing production.
“It is a choice. And I want to choose housing and single-family homes for our people here in California,” he said.
Matt Mahan
Mahan said the city of San Jose dramatically lowered fees related to housing production, despite objections from park and affordable housing advocates. That lowering of fees, along with expediting the permitting process, has resulted in thousands of new homes in the construction pipeline, he said.
“I have a track record as mayor of a large city of removing the regulatory burden and the fees that, while well-intended, prevent us from having the very thing we need, which is abundant, affordable housing,” Mahan said.
In addition, Mahan said state building codes should be simplified because they result in a ton of extra costs to construct homes.
“We’re going to have to have some tough conversations with our friends in the environmental movement, the fire marshal, all the folks who have added layer after layer after layer” to the codes, he said.
Katie Porter
Porter suggested the state should work with cities that issue building permits to come up with a standardized application used statewide to speed up construction. She also said she wanted to look at innovative construction techniques and building materials, as well as creative financing programs.
“I live in shared-appreciation housing,” she said. “I own my home. I do not own the land upon which it sits. It is a very, very innovative program, and but for that program, I wouldn’t be able to call myself a Californian today.”
She also challenged the idea of a 20% down payment, saying someone who puts down 3% to 10% as a down payment can be a successful homeowner with the right home loan programs.
Eric Swalwell
Swalwell — who joined the forum via video conferencing because he was in Washington, D.C. — said that as governor, he’d implement a “90-day shot clock” to require every agency in the state responsible for approving new building applications to render their decisions.
“We need certainty, he said. “A goal, to me, without a deadline is a dream. Californians are done dreaming.”
He emphasized that duplexes, four-plexes and townhomes may be more affordable for first-time homebuyers and encouraged more production of these types of housing.
Antonio Villaraigosa
To expedite home construction, Villaraigosa said he’d like to suspend the California Environmental Quality Act. The state law deals with the environmental reviews of projects, but developers say it often results in delays and could deter new developments.
In addition to suspending CEQA, Villaraigosa said he wants to address “broken zoning laws” and permitting regulations.
He also said cities and counties must understand that every locality must build housing. At the same time, he recognized that for some communities, that might mean more single-family housing, while other places could construct more condos and multi-family developments.
“One of the things that I intend to do is work with the legislature to understand that one size doesn’t fit all, but (also) make sure that the cities and counties understand that we’re going to have to build that housing,” he said.
Leave a Reply