The housing crisis in California has been a pressing concern since the early 2000s, impacting policymakers and residents alike.
Median home prices in the state average more than $800,000. And more than 1.5 million households — pay more than 50 percent of their income toward rent as reported by the California Department of Housing and Community Development (HCD). And the situation appears particularly dire in San Luis Obispo County.
Jocelyn Brennan, CEO of The HRM Corp. emphasized the challenges this crisis poses to businesses, saying "Everyone is having a really hard time hiring right now because there just isn't the housing capacity for their employees. And then I think we do see a lot of young families leaving our area countywide."
Housing took center stage during the annual Central Coast Economic Forecast event, which also highlighted its significance within the student community.
Brennan stressed the need for housing solutions, saying, "We have a lot of amazing talent coming out of Cal Poly, and if we can create housing so that they can live where they work, our community will be better because of it."
Christopher Thornberg, founding partner at Beacon Economics, pointed out that affordability may not be the primary issue. He noted that the share of households facing housing cost constraints has decreased in recent years. The key problem, he argues, is the shortage of housing.
"Why are prices going up so much? Because they're not building enough. That is the key. It's the shortage of housing that's causing prices to go up to basically limit potential buyers to a very select group," Thornberg emphasized.
Both Thornberg and Brennan concur that building more affordable housing is the solution to the crisis, though it will likely take years.
"We're really playing catch-up. So we did not build enough housing for years. And now we're seeing a period of trying to catch up with the population of our state and our county," Brennan acknowledged.
Thornberg concludes by saying that if the County wants to see growth soon, multifamily homes are needed, as soon as possible.
"Do all your battles over single-family you want. If you really want to help this county, if you want to help young people, if you want to help businesses expand and grow… Multifamily, multifamily, multifamily."
In an effort to address the housing crisis, Assembly Bill 1287 is on the horizon. It could permit developers to exceed zoning limits if they include affordable units. This offers hope for both students and concerned residents in the San Luis Obispo community.
