Coldwell Banker House 2,200-square feet 4 bedroom 2-1/2 baths Family room 2-car garage Nice...
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Transcript of Coldwell Banker House 2,200-square feet 4 bedroom 2-1/2 baths Family room 2-car garage Nice...
Coldwell Banker House
Coldwell Banker House
• 2,200-square feet • 4 bedroom • 2-1/2 baths • Family room • 2-car garage • Nice neighborhood
$170,000 in Houston
$320,000 in Portland
$422,000 in Modesto
$1,100,000 in San Jose
1969 Median Home Values
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
NewYork
San Jose LosAngeles
U.S.Average
PortlandModesto
Source: Census Bureau
1969 Home Value to Income Ratios
0
1
2
3
NewYork
San Jose LosAngeles
U.S.Average
PortlandModestoHome Value Divided by Family Income
Source: Census Bureau
2006 Median Home Values
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
San Jose LosAngeles
NewYork
ModestoPortlandU.S.Average
Source: Census Bureau
2006 Home Value to Income Ratios
0
2
4
6
8
10
San Jose LosAngeles
NewYork
ModestoPortland U.S.Average
Home Value Divided by Family Income
Source: Census Bureau, HUD
Urbanized Area Population Density
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
LosAngeles
San JoseNewYork
ModestoPortlandU.S.Average
People Per Square Mile
Source: Census Bureau
Growth-Management
PlanningEfforts to control the rate and/or the location of future growth.
$933,000 in London
•LAFCos•CEQA•Planning/Appeals
Why Is California Housing So Expensive?
Urban Growth Boundary
Rule: Housing will remain affordable as long as developers have access to vacant, unregulated land outside of city limits
95%5%
Rural Develop-ments 0.9%
Farms & Open Space 94.5%
Cities and
towns 4.6%
Source: USDA, 1997 Natural Resources Inventory
Private property is "an institution that communities reshape over time to promote evolving goals."
—Eric Freyfogle
New York City’s historic preservation "law embodies a comprehensive plan to preserve structures of historic or aesthetic interest wherever they might be found in the city"
—Justice Brennan, PennCentral
New London had "carefully formulated an economic development plan that it believes will provide appreciable benefits to the community"
—Justice Stevens, Kelo v. New London
"The taking occurred in the context of a comprehensive development plan."
—Justice Kennedy, Kelo v. New London
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Population Per Square Mile
Density and Commuting
Source: 2000 Census
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Population Per Square Mile
Density and Commuting
Source: 2000 Census
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Population Per Square Mile
Density and Commuting
Source: 2000 Census
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Population Per Square Mile
Density and Commuting
Source: 2000 Census
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Population Per Square Mile
Density and Commuting
Source: 2000 Census
Demand
Supply
Housing Supply & Demand
Quantity
Demand
Supply
Housing Supply & Demand
Quantity
“Government regulation is responsible for high housing costs where they exist.”Edward Glaeser & Joseph Gyourko
The Planning Penalty
• Added cost per median-valued home
• $165,000 in Modesto• $316,000 in Los
Angeles• $513,000 in San Jose• $850,000 in San
Francisco-Oakland area
The Total Annual Penalty• Added cost to all people who
bought homes in the nation, state, or region during 2005
• $136 billion in California• $275 billion in U.S.A.
Total Annual Planning Penalties(billions of dollars)
1364
3
MA 15RI 2CT 6NJ 17MD 3DC 11
17
8
2
6
3
235
1
>$1 billion<$1 billion$0 Other factors
• More volatile prices• Declines in employment and income• Ensures that only affluant people can afford to live in a region• “Boutique city catering only to elite”
Black Elected Officials in the South
0
4,000
8,000
12,000
16,000
20,000
1963 2003
Black Per-Capita Income as Percent of White
0
20
40
60
80
100
1963 2003
United States Homeownership Rates
0
10
20
30
40
50
60
70
80
90
100
White Hispanic Black
Percent
“In sprawled areas, black households consume larger units and are more likely to own their homes.”
Matthew E. Kahn
“Had Portland's policies been applied nationwide over the last 10 years, over a million young and disadvantaged families, 260,000 of them minority families, would have been denied the dream of home ownership.”
Randall Pozdena
The New Segregation
Solutions Worse Than the Disease
• Inclusionary Zoning • Subsidies to Low-Income Housing • Rent controls • Tax-increment financing
These practices reduce housing costs for a small minority by driving up the cost of housing and/or taxes for everyone else
“Inclusionary zoning produces few units. After passing an ordinance, the average [Bay Area]city produces fewer than 15 affordable units per year.”Powell & Stringham
“Inclusionary zoning makes other homes more expensive. We estimate IZ causes the price of new homes in the median city to increase by $22,000 to $44,000.”Powell & Stringham
“New housing production drastically decreases the year after cities adopt inclusionary zoning. . . . New construction decreases 31 percent.”Powell & Stringham
“Price controls fail to get to the root of the affordable housing problem. . . . The real problem is government restriction on supply.”Powell & Stringham
“If policy advocates are interested in reducing housing costs, they would do well to start with zoning reform.”Edward Glaeser & Joseph Gyourko
Ban Government Planning
• Repeal LAFCos, CEQA, and other state planning laws• Shut down city planning• Replace planning with: • User fees • Markets • Mission-specific agencies
Protecting
freedom,
mobility, and
affordable
homeownership
Recovering from
Planning
San Jose, CA
November 10–12,
2007
Land Use Without
Zoning
Houston, TX
May 16–18, 2008
For more information:
Web sites:
ti.org
cato.org
americandreamcoalition.org
E-mail: [email protected]
