Creating More Workforce Housing for a Growing Region
The imbalance between the Bay Area’s housing supply and demand has reached fever pitch. San Francisco, for example, created 28,800 jobs in 2013 while adding only 120 housing units. It is very clear that our inability to generate housing at the pace we are generating jobs is fueling an affordability crisis and at some point it will put the brakes on further economic growth.
Employers are faced with the need to provide higher wages for their workers, putting a strain on their bottom line, and it becomes increasingly difficult to lure top talent to a region where they cannot afford to buy a home. As the Bay Area Economic Institute reported in its 2012 Regional Economic Assessment, there are “severe institutional constraints on construction that prevent demand from being met,” and it is a driving factor in the region’s “notoriously high” housing costs. The cure to Bay Area’s affordability ailment is to significantly increase the supply of housing units and commercial space throughout the region, and to do so, we must work to mitigate these regulatory barriers to development of all kinds.
Our Workforce Housing Committee meets regularly to engage on our related policy priorities, engage with guest speakers, and network.
Kofi Bonner, President, Lennar Urban
Denise Pinkston, Partner, TMG Partners