Source: bisnow.com | Re-Post MNM Partners 09/21/2017 –
The Bay Area is extremely behind in meeting the housing needs for its population growth. For every eight jobs created, only one unit of housing has been built, according to Bay Area Council Senior Vice President, Public Policy Matt Regan.
From 2007 to 2014, the Bay Area only built 57% of its 214,500-unit Regional Housing Need Allocation set by the state, according to a report from the Association of Bay Area Governments.
The California Department of Housing and Community Development calculates the RHNA for each jurisdiction based on forecast population growth over a seven-year cycle. The department determined 187,994 units need to be built from 2015 to 2023 to meet the demands of the region. As of April, the Bay Area has met 15% of its obligation, issuing 27,676 permits since 2015. Santa Clara County issued the most permits with 9,488, but that was only 16% of the 58,000 units needed to meet its 2023 requirement.
“The problem of cities being less than enthusiastic in permitting homes is not a new one,” Regan said. “We’ve seen since the late ’70s and early ’80s a pretty precipitous drop in the number of units permitted in California.”
Since the mid- the too late 1980s, permitting has fallen to 80,000 units per year, which is the typical number of permits issued during a recessionary period, according to Regan.
“We’re producing recessionary levels of housing at a time when the economy is booming, capital is cheap and at a time when [housing] should be flourishing,” Regan said.