Another Week, Another Study Showing How to Make a Dent in Our Housing Affordability Crisis  

Last week, we reported on a recent study by the Federal Reserve Bank of Minneapolis showing in stark terms that one of the best ways to keep existing lower-income housing stock affordable is building new market-rate housing. And this week, yet another analysis , this one by the Terner Center for Housing Innovation at UC Berkeley, finds that taking the shackles off building market-rate housing by reducing fees and regulatory burdens can provide huge benefits for overall housing affordability, including in the lower and moderate segments of the market.

This matters because with plans afoot to bring an up to $20 billion regional housing bond to Bay Area voters in November, ensuring we get the most housing units possible for our money must be a top priority if we ever hope to make a dent in our housing affordability crisis. That’s why the Bay Area Council has been engaging with architects of the bond measure to advocate for changes that our analysis shows can double the number of units produced, from the 37,500 currently projected to 75,500 units.

The changes would allow a portion of the bond funds to be used to help pay the cost of local requirements for including affordable or below market rate units in new housing developments. Because of how astronomically expensive it is to build new housing in the Bay Area, these additional costs can mean the difference between a project going forward or not. Which, as our research along with that of the Federal Reserve and Terner Center shows, also means the difference between improving overall housing affordability or not. Stay tuned for more updates. To engage in our housing policy work, please contact Vice President Louis Mirante.