Berkeley’s Attack on Housing(beyondchron.org)
beyondchron.org
Berkeley’s Attack on Housing
http://www.beyondchron.org/berkeleys-attack-housing/
98 comments
"What students do to this city"
How short sighted, without the school the whole Silicon Valley thing might have happened somewhere else and property values wouldn't be nearly as high.
How short sighted, without the school the whole Silicon Valley thing might have happened somewhere else and property values wouldn't be nearly as high.
As a longtime resident of a college town, I have no trouble both appreciating the value of having a University (which I went to) in town, and finding the students themselves to often be an irritance. I'm sure I was loud, obnoxious, and generally disrespectful of other people when I was a student too, but that doesn't make it "inexplicable" to dislike such behavior now.
I don't think we should punish them through housing policy though :-).
I don't think we should punish them through housing policy though :-).
But once you have yours the rest don't matter. Nobody's founding much of anything in Palo Alto garages these days.
Thanks for telling it like it is. This is pretty much what has happend all over the Bay Area. Goodluck to the homeowners in getting to see their grand-children grow up when their kids can't afford to live here anymore.
I'm confused by these two statements:
"as close to our actual costs as possible."
"but the steady income is really what Berkeley property is good for"
Wouldn't 'as close to costs as possible' be exactly what it costs to maintain the property (insurance, maintenance / upgradtes, rates, etc) thereby eating all the steady income.
"as close to our actual costs as possible."
"but the steady income is really what Berkeley property is good for"
Wouldn't 'as close to costs as possible' be exactly what it costs to maintain the property (insurance, maintenance / upgradtes, rates, etc) thereby eating all the steady income.
> Wouldn't 'as close to costs as possible' be exactly what it costs to maintain the property (insurance, maintenance / upgradtes, rates, etc) thereby eating all the steady income.
Yes. We basically break even, including the cost of the mortgage. The idea is to own the property outright in 30 years, and then slowly ramping up the profits but still staying below market rate. Or simply sell the property.
But the point is it's a long term investment and savings account, that doesn't depend on the value to go up. If I wanted to be more rational I would add in a small return on capital as a cost, which would still have me be below market, just less so.
Yes. We basically break even, including the cost of the mortgage. The idea is to own the property outright in 30 years, and then slowly ramping up the profits but still staying below market rate. Or simply sell the property.
But the point is it's a long term investment and savings account, that doesn't depend on the value to go up. If I wanted to be more rational I would add in a small return on capital as a cost, which would still have me be below market, just less so.
There's a big difference between self-imposing a 15% profit margin, or taking the "market rate" 150%+ profit margin.
Being anti-housing in urban areas doesn't just hurt the poor and middle class. It's also definitively anti-environment.
The people who would've ended up in new housing don't just disappear into the ether; they end up living in some further out suburb, where they contribute to encroaching on nature, and where they have longer, more energy-intensive commutes.
To be an environmentalist and a NIMBY is a contradiction in terms. The bay area, unfortunately, is chock full of hypocrites of this sort.
The people who would've ended up in new housing don't just disappear into the ether; they end up living in some further out suburb, where they contribute to encroaching on nature, and where they have longer, more energy-intensive commutes.
To be an environmentalist and a NIMBY is a contradiction in terms. The bay area, unfortunately, is chock full of hypocrites of this sort.
Someone else posted this link in response to another comment, but I think it's more relevant to yours: http://marketurbanism.com/2017/01/27/the-disconnect-between-...
Here's a quote: In many metro areas, household emissions in the suburbs are roughly double those of city households.
Here's a quote: In many metro areas, household emissions in the suburbs are roughly double those of city households.
> The bay area, unfortunately, is chock full of hypocrites of this sort.
Cough San Francisco Sierra Club Cough
Cough San Francisco Sierra Club Cough
If fixing this interests you, please consider signing up for a membership and voting for better executives in the local elections, or writing the national chapter and asking them to decertify the local group; I have several friends doing both.
Relevant links about SF Sierra Club:
https://www.forbes.com/sites/scottbeyer/2017/05/31/san-franc...
They're fighting to preserve a.... car garage. http://thebaycitybeacon.com/32740/282282/a/the-sierra-club-f...
https://www.forbes.com/sites/scottbeyer/2017/05/31/san-franc...
They're fighting to preserve a.... car garage. http://thebaycitybeacon.com/32740/282282/a/the-sierra-club-f...
George Washington had his oil changed there!
Here is a summary of basically exactly what you're talking about, happening just a few miles away from Berkeley:
http://www.oaklandmagazine.com/June-2017/Dealing-with-the-Sp...
http://www.oaklandmagazine.com/June-2017/Dealing-with-the-Sp...
I've never thought of it that way but it definitely makes sense.
Apart from the anti-housing issues that you outlined, the city loses out on new property tax revenue that would be levied at the current market rate.
Staying in office is always the #1 goal.
Apart from the anti-housing issues that you outlined, the city loses out on new property tax revenue that would be levied at the current market rate.
Staying in office is always the #1 goal.
I wish urbanists / "urban planners" would learn that same lesson too.
They seem to think gentrification / "YIMBYism" is "good" because it "invests in" or "cleans up" the neighborhood, not realizing that all the poorer people they "cleaned up" don't disappear -- they too end up living in some further out area, with all the same problems that causes.
Edit: This isn't an anti-construction argument. This is a pro-appropriate-construction argument. Not just any new building works towards a solution. Not just any units actually help the supply side of this problem.
They seem to think gentrification / "YIMBYism" is "good" because it "invests in" or "cleans up" the neighborhood, not realizing that all the poorer people they "cleaned up" don't disappear -- they too end up living in some further out area, with all the same problems that causes.
Edit: This isn't an anti-construction argument. This is a pro-appropriate-construction argument. Not just any new building works towards a solution. Not just any units actually help the supply side of this problem.
Limiting the supply of urban housing makes the displacement problem worse, not better. As long as the demand for housing far outstrips the supply, only the affluent will be able to afford to live in desirable places like Berkeley. We need more market rate and below market rate housing. While below market rate housing has the greatest impact, both help reduce displacement [1]. Realistically though, there's no way Berkeley can produce enough BMR to fix this problem with existing funding sources. According to the 2015 Nexus study, a household of 3 making 100% of AMI (area median income) can't afford market rate rents and the situation is far worse for families looking to buy a modest house or condo.
Local YIMBY groups like East Bay Forward, YIMBY Action and SF BARF support the construction of both market rate and below market rate. They have on occasion opposed increases in the BMR requirements for new housing, but that was out of concern that the new requirements were so high that substantially less housing would be built and the absolute number of BMR numbers would in fact be lower. While not conclusive, some early indications suggest this concern was warranted [2].
[1] http://www.lao.ca.gov/Publications/Report/3345 [2] https://medium.com/@LocalPolitics/the-25-inclusionary-rate-i...
Local YIMBY groups like East Bay Forward, YIMBY Action and SF BARF support the construction of both market rate and below market rate. They have on occasion opposed increases in the BMR requirements for new housing, but that was out of concern that the new requirements were so high that substantially less housing would be built and the absolute number of BMR numbers would in fact be lower. While not conclusive, some early indications suggest this concern was warranted [2].
[1] http://www.lao.ca.gov/Publications/Report/3345 [2] https://medium.com/@LocalPolitics/the-25-inclusionary-rate-i...
Displacement is definitely an issue, but it doesn't go away if you stop development. SF has been notoriously anti-development for some time, and that didn't stop the poor and working class from getting displaced (except for those with rent control or subsidized housing, of course).
The real progressive solution here would be to use taxation for the government to build its own more affordable housing, housing that is mixed-income, mixed-use, etc. But, that can easily happen in parallel with private development.
The real progressive solution here would be to use taxation for the government to build its own more affordable housing, housing that is mixed-income, mixed-use, etc. But, that can easily happen in parallel with private development.
Aka The Projects.
Yes and no. "The projects" were government housing, but they were not mixed-income or mixed-use, overall they were just kind of bungled. Often they were far away from any kind of city amenities like decent transit or parks or shopping.
Other countries like Singapore and Austria manage to have government-built/run housing that works fine. I don't think there's anything fundamentally stopping the US from doing it competently, the high-level design was just really bad before. You don't want to concentrate only very low income people (aka the people with the most social problems and the least social/political capital) in big towers in the middle of nowhere, that's a recipe for disaster.
Other countries like Singapore and Austria manage to have government-built/run housing that works fine. I don't think there's anything fundamentally stopping the US from doing it competently, the high-level design was just really bad before. You don't want to concentrate only very low income people (aka the people with the most social problems and the least social/political capital) in big towers in the middle of nowhere, that's a recipe for disaster.
In what way is this proposal better or more progressive than direct cash transfers to acquire the same market housing that everyone else does?
If there are problems with cash transfer programs --- for instance, that only certain homes end up eligible due to paperwork requirements, or under-market payments --- it seems much easier to fix those than to turn the government itself into a landlord for millions of people. Tenant/landlord relations are themselves a kind of marketplace, and central planning handles those poorly.
If there are problems with cash transfer programs --- for instance, that only certain homes end up eligible due to paperwork requirements, or under-market payments --- it seems much easier to fix those than to turn the government itself into a landlord for millions of people. Tenant/landlord relations are themselves a kind of marketplace, and central planning handles those poorly.
> In what way is this proposal better or more progressive than direct cash transfers to acquire the same market housing that everyone else does?
Rent-seeking (in the economic sense). IIRC, any kind of direct cash transfer (or even subsidized loan) has been known to result in price increases for everyone. See, e.g., college tuitions. (Disclaimer: I haven't looked into the data myself and am relying on recall of things I've read in the past.)
Rent-seeking (in the economic sense). IIRC, any kind of direct cash transfer (or even subsidized loan) has been known to result in price increases for everyone. See, e.g., college tuitions. (Disclaimer: I haven't looked into the data myself and am relying on recall of things I've read in the past.)
Where do you think existing residents go when migrants take over the existing housing stock?
Like many in this debate, you seem to think that preventing housing construction prevents population change. But it only preserves the size of the population, not the composition
There is more than enough demand already to unseat every long-time renter by outbidding them at lease renewal time, and this is happening. No developer intervention required.
Like many in this debate, you seem to think that preventing housing construction prevents population change. But it only preserves the size of the population, not the composition
There is more than enough demand already to unseat every long-time renter by outbidding them at lease renewal time, and this is happening. No developer intervention required.
> Like many in this debate, you seem to think that preventing housing construction prevents population change.
Not at all. That's a claim you've invented entirely on your own, not something I said.
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My claim is that YIMBYism is often an attempt to replicate the housing problems seen in places like Berkley, not an attempt to fix them. YIMBYism is often an attempt to inflate property just like NIMBYism is.
If 1,000 people are slowly dying of thirst in the desert, and PepsiCo offers to build a Pepsi distribution plant in your desert, some people will say "no" and some will say "yes", and neither will be addressing the water shortage problem because Pepsi isn't water.
That's essentially how housing works today. No one builds housing for residents, which is the problem. If you oppose the construction of buildings that are not housing for residents (like say, luxury condos), you get slandered with a "NIMBY" label, despite being pro-housing, because the construction makes the existing problem worse (the act of constructing that luxury condo will inflate all nearby property values too, displacing more people than the new building itself will hold)
Not at all. That's a claim you've invented entirely on your own, not something I said.
--
My claim is that YIMBYism is often an attempt to replicate the housing problems seen in places like Berkley, not an attempt to fix them. YIMBYism is often an attempt to inflate property just like NIMBYism is.
If 1,000 people are slowly dying of thirst in the desert, and PepsiCo offers to build a Pepsi distribution plant in your desert, some people will say "no" and some will say "yes", and neither will be addressing the water shortage problem because Pepsi isn't water.
That's essentially how housing works today. No one builds housing for residents, which is the problem. If you oppose the construction of buildings that are not housing for residents (like say, luxury condos), you get slandered with a "NIMBY" label, despite being pro-housing, because the construction makes the existing problem worse (the act of constructing that luxury condo will inflate all nearby property values too, displacing more people than the new building itself will hold)
I think you've got cause and effect wrong. What mostly inflates property values is the simple fact that lots of people want to live in an area. Or put it this way: the reason people want to live in the Bay Area is not because of the amazing luxury condos.
Sure, it's possible to build too many luxury condos and depress prices in that market segment, while not building enough of something else, but we certainly don't have that problem now.
Sure, it's possible to build too many luxury condos and depress prices in that market segment, while not building enough of something else, but we certainly don't have that problem now.
Residents don't need new housing. They are, by definition, already housed.
They need a way to stay housed as nonresidents move in.
If you can choose a swanky new building in Berkeley, then you don't need to commandeer housing that someone is already living in.
They need a way to stay housed as nonresidents move in.
If you can choose a swanky new building in Berkeley, then you don't need to commandeer housing that someone is already living in.
> Like many in this debate, you seem to think that preventing housing construction prevents population change. But it only preserves the size of the population, not the composition
It doesn't preserve size, either. Existing units can be occupied more densely, units not intended (or legally permitted) for residential use can be occupied, and population can grow that isn't housed.
It doesn't preserve size, either. Existing units can be occupied more densely, units not intended (or legally permitted) for residential use can be occupied, and population can grow that isn't housed.
Another example of how "progressives" in Berkeley are all for progressive policies (and driving a Prius) until they conflict with their NIMBY attitude towards their home values. Holdovers from the 60's and 70's who have seen their home values skyrocket and now want to prevent building of newer rental units (the "Missing Middle", 3-8 unit, smaller apartment buildings).
Thanks for this. Also relevant, recent article about this issue in Oakland: http://www.oaklandmagazine.com/May-2017/The-Real-Cause-of-Ge...
A reasonable person could argue that the people who move to cities for high-paying jobs do not need government assistance with access to opportunity: with our college degrees and in-demand skills, we have more than almost anyone else.
Similarly, we have little in common with immigrants from poor countries fleeing extreme poverty and dysfunctional violence. In the immigration analogy, we are more like the plutocrats buying access through investor visas. Even the most pro-immigration liberals don't think immigration should be for sale to the rich.
So why should cities be forced to remake themselves for our benefit?
The simple answer is, it's not for our benefit. The highly skilled, well educated, and well employed will happily take over every existing housing unit, no matter how poor its previous occupant. We might even prefer to live in beautiful, low-rise cities with only fellow elites for neighbors.
Increasing scale until there's enough for everyone is the alternative to just replacing existing residents in existing homes.
Similarly, we have little in common with immigrants from poor countries fleeing extreme poverty and dysfunctional violence. In the immigration analogy, we are more like the plutocrats buying access through investor visas. Even the most pro-immigration liberals don't think immigration should be for sale to the rich.
So why should cities be forced to remake themselves for our benefit?
The simple answer is, it's not for our benefit. The highly skilled, well educated, and well employed will happily take over every existing housing unit, no matter how poor its previous occupant. We might even prefer to live in beautiful, low-rise cities with only fellow elites for neighbors.
Increasing scale until there's enough for everyone is the alternative to just replacing existing residents in existing homes.
My favorite was seeing a "Bernie Sanders: breaking the class ceiling" sign in front of someone's house in the damn hills.
During the primary season, I saw a Bernie Sanders sign in a window (I think it was their local campaign HQ) and a homeless man sleeping in front of it.
There is a broad coalition of people who are excited about socialist ideas. ¯\_(ツ)_/¯
Fine, but if they're honest, it should be the "class floor" coming from them.
Nobody in their right mind would support 3-8 unit apartments going up next door.
Those type of buildings are not very profitable to build now with modern building requirements like ADA. Once the economy goes south, the rent and quality of tenant will plunge.
Real estate is always boom-bust. Having a conservative outlook about building is pragmatic.
Those type of buildings are not very profitable to build now with modern building requirements like ADA. Once the economy goes south, the rent and quality of tenant will plunge.
Real estate is always boom-bust. Having a conservative outlook about building is pragmatic.
Can anyone seriously use the term "Affordable housing" in Berkeley with a straight face? The median home value has just crossed 1 million dollars, which buys you a single floor 2 bedroom bungalow. It is very clear that the current homeowners of Berkeley are just fine with the way things are.
Unfortunately, the young people who are subject to the rental market are also very politically inactive when it comes to local politics. Berkeley residents - how about next time you protest, focus not only on national politics but also on your own city's issues!!
How are you supposed to gain representation within an area that you literally cannot live within (even though you work / receive education there) due to a lack of (affordable) housing?
You can get involved in regional planning (such as Plan Bay Area and the RHNA) and support state bills (such as Scott Wiener’s SB-35) that put more power in regional commissions that have more equal representation. Some Berkeley NIMBYs actually have the gall to claim that cities’ rights over zoning is pro-democratic (such as Zelda Bronstein (https://48hills.org/2016/11/28/17209/) and Thomas Lord (http://48hills.org/2017/05/19/why-housing-quotas-lead-to-dis...), whereas as you point out it, hyper-local zoning disenfranchises commuters (https://pedestrianobservations.com/2016/06/18/a-theory-of-zo...). When people say that cities’ rights are pro-democracy, call them out on it.
Edit: Also add public comment on zoning decisions that affect you even if you cannot vote.
Edit: Also add public comment on zoning decisions that affect you even if you cannot vote.
Take a look at drivers license address requirements [1], and figure out how to game it. Or some other form of identification. The system generally assumes that if you can reliably receive mail address to you at a particular residential address and you tell institutions that you live there, then you live there - at least until more detailed probing happens.
[1] https://www.dmv.ca.gov/portal/dmv/detail/dl/residency_requir...
[1] https://www.dmv.ca.gov/portal/dmv/detail/dl/residency_requir...
My point was more that in the modern world people's interests likely cover a span or several spans of regions. Not just one single locality.
Sometimes (near state lines in the US) not even /state/ level laws would provide adequate representational coverage.
A more accurate way of providing representation might be to identify areas of major expenditure. Employment, Education, Living, etc. Aside from residency should be either by some absolute threshold of transaction value or possibly by percentage of income. A significant economic interest in an area should be related to representation in that area (as you are being taxed for your activity there). Corridors that connect those areas should also apply (you do have to traverse them for your interests); transit and transit related laws should thus probably be at a major metro or higher level.
Sometimes (near state lines in the US) not even /state/ level laws would provide adequate representational coverage.
A more accurate way of providing representation might be to identify areas of major expenditure. Employment, Education, Living, etc. Aside from residency should be either by some absolute threshold of transaction value or possibly by percentage of income. A significant economic interest in an area should be related to representation in that area (as you are being taxed for your activity there). Corridors that connect those areas should also apply (you do have to traverse them for your interests); transit and transit related laws should thus probably be at a major metro or higher level.
> Unfortunately, the young people who are subject to the rental market are also very politically inactive when it comes to local politics.
Quite true. Also, they don't actually care all that much, because most of them have their housing subsidized by federal loans or their wealthy parents or both.
Quite true. Also, they don't actually care all that much, because most of them have their housing subsidized by federal loans or their wealthy parents or both.
From what I understand, they are squeezed like sardines to a room though. I would imagine they care - or maybe they don't know how good it can be. I was lucky to have easy access to a single room in college in the middle of an east coast city.
> they are squeezed like sardines to a room though
Yeah but that's been true for a long time. When I attended I had a friend who rented a piece of wood suspended above the laundry room of a frat house for $150/mo (while I paid $400/mo to share a one bedroom unit).
Yeah but that's been true for a long time. When I attended I had a friend who rented a piece of wood suspended above the laundry room of a frat house for $150/mo (while I paid $400/mo to share a one bedroom unit).
And thus we are left to renting out a baby boomer's garden shack for the cost of a mortgage.
This is, for those unfamiliar with the situation there, not actually an exaggeration, but literally what one of my friends was doing. It had been converted to a "cottage" and it was one room with a bathroom in the corner. FWIW it was pretty cute, but it was about $2k a month and had no dedicated parking. Climate control was "it gets hot in the sun, open the windows to cool it down" plus a space heater she had. The people living there bought the house decades ago and paid less on the mortgage for the entire property than what they rented out the cottage for.
How do we fix this?
How do we fix this?
Move.
I own a 2,000 square foot home with spacious city lot for 1/3 of that shed.
The Bay Area is cool if you bought a house in 1996. Now? You're crazy.
I own a 2,000 square foot home with spacious city lot for 1/3 of that shed.
The Bay Area is cool if you bought a house in 1996. Now? You're crazy.
We could try to regulate away the good fortune of the people who bought the house, or we could try to convince the tech industry that they actually don't all need to be colocated, alleviating competition for resources in that area. What I've observed about human nature suggests that neither would be very popular.
Or we could build more housing
I agree with building more housing. There are a decent amount of empty lots in Berkeley... and a smallish downtown area that could be revamped. However, even in best case scenario with a bunch of new housing, unless people start selling their single family houses to get replaced by higher density housing, I don't see housing prices going down a ton.. it won't be cheap but it may be more accessible to the middle class.
> selling their single family houses to get replaced by higher density housing
That's exactly what would happen in a normal market.
That's exactly what would happen in a normal market.
Or you could move somewhere cheaper
That actually does happen. And then we have the twisted situation where the economists say the economy is great, practically zero unemployment, even construction workers are scarce in California; and at the same time workforce participation rates for working-age males is the lowest it has ever been. Given how terrible idle males tend to be, this is worrisome.
http://www.latimes.com/business/la-fi-labor-force-men-201611...
People used to move to cities for the opportunities. Now it's increasingly difficult to do so. For lots of reasons we need to make it possible for people to move to the cities and thrive.
People used to move to cities for the opportunities. Now it's increasingly difficult to do so. For lots of reasons we need to make it possible for people to move to the cities and thrive.
Suburbs in most places = medium-low pay but fairly cheap housing
country = cheap housing, no [tech] jobs
Metro areas (more dense than suburbs, less dense than cities...e.g. most of the Bay Area) = expensive housing, medium or high pay
Cities = extremely expensive, high pay (for tech jobs)
Pretty much every scenario seems to be "optimized" to have techies paying 30-50% of their monthly income to housing. You can't really win, but you can attempt to maximize the real dollar amount you end up left over with with each month. Working remotely is "cheating the system" and is therefore largely disallowed, or "work from home" is allowed only to quell some degree of outrage. Literally the industry that invented video chat doesn't [want to] understand how to use it to work remotely.
Pretty much every scenario seems to be "optimized" to have techies paying 30-50% of their monthly income to housing. You can't really win, but you can attempt to maximize the real dollar amount you end up left over with with each month. Working remotely is "cheating the system" and is therefore largely disallowed, or "work from home" is allowed only to quell some degree of outrage. Literally the industry that invented video chat doesn't [want to] understand how to use it to work remotely.
Not need housing where it's expensive. If you cannot increase supply, you must destroy demand.
I agree. I don't see Berkeley growing too much outside of the downtown simply because it has a lot of character that people are attached to - and lots of wealthy people that are retired or just aren't looking for change. Still, there are still empty lots around so loosening the process to get housing approved would help.
However, the long term fix I think should be that UC should stop annually increasing the number of students it accepts to UC Berkeley. I know this probably would never happen - but I don't see another solution. Why not benefit another aspiring area of California? Berkeley will not grow so where will the students go?
Similarly, if the Bay area has decided it doesn't want to grow upwards, then there should be more incentive to grow outwards. There should be a cap on the amount of office space growth in any given city unless housing grows equally... again I doubt this will happen. But I think it would be smart. People go where the money is, then comes the infrastructure, then comes other small businesses, etc.
However, the long term fix I think should be that UC should stop annually increasing the number of students it accepts to UC Berkeley. I know this probably would never happen - but I don't see another solution. Why not benefit another aspiring area of California? Berkeley will not grow so where will the students go?
Similarly, if the Bay area has decided it doesn't want to grow upwards, then there should be more incentive to grow outwards. There should be a cap on the amount of office space growth in any given city unless housing grows equally... again I doubt this will happen. But I think it would be smart. People go where the money is, then comes the infrastructure, then comes other small businesses, etc.
Can you use student loans to pay for housing?
If so, fuck that!
If so, fuck that!
Not that I'd suggest it, but you could use personal loans or credit cards instead; at least those debts can be defaulted on and wiped clean.
FWIW in almost 10 years of living in half a dozen apartments between 2 states, I've never had the option to pay by CC. It's always check or money order, and if you miss a payment, cashier's check.
Balance transfer, usually provided as a paper check or cash directly deposited into your checking account at a teaser interest rate for 12-18 months.
Raise property taxes and allow people to build low rise apartments.
That will both provide money for local schools and force the increase in efficient usage of land.
That will both provide money for local schools and force the increase in efficient usage of land.
>Raise property taxes
That's difficult in California: https://en.wikipedia.org/wiki/California_Proposition_13_(197...
That's difficult in California: https://en.wikipedia.org/wiki/California_Proposition_13_(197...
I didn't say it was easy or politically viable.
It's almost funny how bad that law is for young people.
It's almost funny how bad that law is for young people.
It was voted in by Boomers, what do you expect?
> It was voted in by Boomers, what do you expect?
Boomers weren't the politically-dominant generation at the time Prop 13 was passed. I know people like to pretend all of history is divided between "Boomers" and "Millennials", but at the time of Prop 13, leading edge Boomers were in their late 20s and trailing edge Boomers were tweens. It's less accurate to say that Prop 13 was voted in by Boomers than to say Trump was elected by Millennials.
Prop 13 was voted in largely by the “Silent” and “Greatest” generations. Insofar as Prop 13 is unfair to young people, Boomers were the first young people that were on the recieving end of the unfairness.
Boomers weren't the politically-dominant generation at the time Prop 13 was passed. I know people like to pretend all of history is divided between "Boomers" and "Millennials", but at the time of Prop 13, leading edge Boomers were in their late 20s and trailing edge Boomers were tweens. It's less accurate to say that Prop 13 was voted in by Boomers than to say Trump was elected by Millennials.
Prop 13 was voted in largely by the “Silent” and “Greatest” generations. Insofar as Prop 13 is unfair to young people, Boomers were the first young people that were on the recieving end of the unfairness.
This is their retirement plan.
It's a lot more fun to dress in all black, scream at people, and riot.
But then when they fail, they would have to feel incompetent. It is generally more gratifying to rage against the machine in a way that is unlikely to accomplish something so you don't have to take it personally when it doesn't work, because no one expected it to anyway.
There's affordable housing, and then there's Affordable Housing. Some of the restricted Affordable Housing actually is pretty expensive, while still being too scarce for the demand.
https://medium.com/@Scott_Wiener/market-rate-housing-isnt-a-...
I'm coming to suspect a common trait of goods whose primary or significant function is as an asset that there are built-in incentives to seek the value inflation of those assets.
This happens across asset classes, but there are at least two significant distinctions:
* Purely financial assets: money, stocks, bonds, etc.
* Productive assets, most especially Maslovian assets: those which provide necessities of life.
Purely financial assets can absorb inflation without inherently creating dislocations in the productive economy. This isn't to say that they don't risk bubbles or other issues, only that there's no inherent need for a person to have, say, a specific quantity of stock or money (excepting ongoing expenses for the latter).
Pricing up productive assets is another story -- two roles, wealth preservation, and productive use, are in conflict.
The problem is, from a rational perspective, it makes sense for the owners of such goods to seek value appreciation. This doesn't translate to an increase in real economic growth, but it does increase the owner's claims to such growth.
Through leverage, debt, and lending collateral, there are knock-on effects to other agents as well: a bank whose core asset (and lending reserve) is the market value of its real-estate portfolio benefits by increased valuation of that portfolio.
I'm not entirely sure what if any solutions might exist, though I'm partial to the concept of a land tax (or more generally: a held-asset tax), which increases ongoing carrying costs, and encourges more intensive utilisation of high-value property.
I'm also interested in what areas don't have this problem, and what policies or other conditions tend away from it.
This happens across asset classes, but there are at least two significant distinctions:
* Purely financial assets: money, stocks, bonds, etc.
* Productive assets, most especially Maslovian assets: those which provide necessities of life.
Purely financial assets can absorb inflation without inherently creating dislocations in the productive economy. This isn't to say that they don't risk bubbles or other issues, only that there's no inherent need for a person to have, say, a specific quantity of stock or money (excepting ongoing expenses for the latter).
Pricing up productive assets is another story -- two roles, wealth preservation, and productive use, are in conflict.
The problem is, from a rational perspective, it makes sense for the owners of such goods to seek value appreciation. This doesn't translate to an increase in real economic growth, but it does increase the owner's claims to such growth.
Through leverage, debt, and lending collateral, there are knock-on effects to other agents as well: a bank whose core asset (and lending reserve) is the market value of its real-estate portfolio benefits by increased valuation of that portfolio.
I'm not entirely sure what if any solutions might exist, though I'm partial to the concept of a land tax (or more generally: a held-asset tax), which increases ongoing carrying costs, and encourges more intensive utilisation of high-value property.
I'm also interested in what areas don't have this problem, and what policies or other conditions tend away from it.
I've lived in downtown berkeley for five years and pay 1100 per month for a studio apartment.
For those arguing that the city could zone and facilitate building affordable non subsidized housing, where exactly would it be built?
There isn't an abundance of empty lots AFAIK and it seems enormous highrises would have to be built in large numbers to make any dent in having prices come down.
I would love more options but without even mildly specific suggestions articles like these seem to lack any pragmatism.
For those arguing that the city could zone and facilitate building affordable non subsidized housing, where exactly would it be built?
There isn't an abundance of empty lots AFAIK and it seems enormous highrises would have to be built in large numbers to make any dent in having prices come down.
I would love more options but without even mildly specific suggestions articles like these seem to lack any pragmatism.
The options aren't just single family houses and high-rises. You relax the zoning requirements that raise the lot size required per resident. Lot size minimums, boundary minimums between houses, number of floors, parking minimums, and minimum unit size. Re-legalize single-room occupancy units, so that people who can only afford the bare minimum (room with a lock) can buy that and not be homeless.
Or if those technical requirements that make cheap housing illegal aren't palatable, then just add in much more mixed frame construction. It's already fairly popular, I've seen a bunch of buildings under construction like this. It's basically 1-2 floors of steel or concrete frame for commercial use, along with 3-5 floors of residential wood framed units on top of that. Replace low-density commercial with that mid-density mixed-use, add in mid-rise townhouses, and you've got plenty of room to have five times as many folks in Berkeley.
Of course, the real problem is that housing is too regional for this to make a big difference. It's a huge cost to Berkeley, and what it does is relieve pressure in the greater metropolitan area as people shift their commutes to take advantage of this.
Or if those technical requirements that make cheap housing illegal aren't palatable, then just add in much more mixed frame construction. It's already fairly popular, I've seen a bunch of buildings under construction like this. It's basically 1-2 floors of steel or concrete frame for commercial use, along with 3-5 floors of residential wood framed units on top of that. Replace low-density commercial with that mid-density mixed-use, add in mid-rise townhouses, and you've got plenty of room to have five times as many folks in Berkeley.
Of course, the real problem is that housing is too regional for this to make a big difference. It's a huge cost to Berkeley, and what it does is relieve pressure in the greater metropolitan area as people shift their commutes to take advantage of this.
There are a fair number of "open air" parking lots that I see when just taking a look at satellite imagery.
The second step would be increasing density on Shattuck (lots of single story buildings on or near) or increasing density over the single family homes/duplexes that are very close to downtown.
The second step would be increasing density on Shattuck (lots of single story buildings on or near) or increasing density over the single family homes/duplexes that are very close to downtown.
> There isn't an abundance of empty lots AFAIK
Huge swaths of south and southwest Berkeley (especially near the Emeryville and Oakland border) seem to be fallow, formerly industrial spaces when I drive through. Lots of opportunity for infill there.
Huge swaths of south and southwest Berkeley (especially near the Emeryville and Oakland border) seem to be fallow, formerly industrial spaces when I drive through. Lots of opportunity for infill there.
Are you genuinely suggesting these are the areas of Berkeley that are the subject of the article and general sentiment?
Emeryville is a veritable utopia at first glance and has tax incentives for businesses out the wazoo.
I'm open to the idea that these areas could be developed, but most mission hipsters consider these areas ikealand at best.
I tend to think the valid critique of high prices in berkeley surrounds the existing popular areas.
Emeryville is a veritable utopia at first glance and has tax incentives for businesses out the wazoo.
I'm open to the idea that these areas could be developed, but most mission hipsters consider these areas ikealand at best.
I tend to think the valid critique of high prices in berkeley surrounds the existing popular areas.
Yes the article mentions that a 3 unit building in South Berkeley was rejected for no good reason. There is demand in that area and it would alleviate overall housing costs to build more there.
Note that just because these areas are not as trendy as others, they are still very expensive.
"Arreguin recently joined a Council majority in rejecting a three-unit project at 1310 Haskell Street in South Berkeley that met applicable zoning laws. This was after a previous rejection caused the city to be sued. The city settled the suit and agreed to another hearing. Despite the city attorney warning the Council that they would again be sued if they did not grant approval, the Council voted it down again."
Note that just because these areas are not as trendy as others, they are still very expensive.
"Arreguin recently joined a Council majority in rejecting a three-unit project at 1310 Haskell Street in South Berkeley that met applicable zoning laws. This was after a previous rejection caused the city to be sued. The city settled the suit and agreed to another hearing. Despite the city attorney warning the Council that they would again be sued if they did not grant approval, the Council voted it down again."
Why not relaxing rules for property owners to build units in their own backyards? See https://www.nytimes.com/2017/05/16/us/california-today-housi...
"She spent about $100,000 to add a cottage in her backyard in Berkeley in 2011, and has been renting it out for between $1,500 and $2,000 a month. It paid for itself in under five years, she said."
Why do they need to be relaxed if its already profitable to build one?
I wonder what about building such a unit requires too much red tape. Too bad they don't go into it in the article.
Why do they need to be relaxed if its already profitable to build one?
I wonder what about building such a unit requires too much red tape. Too bad they don't go into it in the article.
There is a specific movement to increase the minimum lot size you need to build one, which would remove the possibility of more than 100 such units.
Coach house airbnbs and one off rentals could be great or terrible. In either case I think its hard to argue this would get rents to go down.
My personal bet is the proliferation of these cute backyard dwellings would actually make rents go higher because these would go for a premium over 50 year old crummy spots.
My personal bet is the proliferation of these cute backyard dwellings would actually make rents go higher because these would go for a premium over 50 year old crummy spots.
I hope "Ecocity Berkeley"[0] (written 1987!) can become a reality. It's exactly the idea that many have commented about: increase density, increase parks, and reduce sprawl.
This is a vision to strive for instead of just preserving whatever state we're currently in.
[0] https://books.google.com/books/about/Ecocity_Berkeley.html?i...
This is a vision to strive for instead of just preserving whatever state we're currently in.
[0] https://books.google.com/books/about/Ecocity_Berkeley.html?i...
Actual UC Berkeley dorm prices.
http://www.housing.berkeley.edu/rates
I'm not sure if these are at/over capacity, but how do non students feel about these prices?
http://www.housing.berkeley.edu/rates
I'm not sure if these are at/over capacity, but how do non students feel about these prices?
Note that this includes 10 meals per week. Maybe that's worth $200/mo.
It definitely is if you were to use it. In either case, as a public institution there may be a cap on the cost of these spots, and should be required reading for any critique/support of the Berkeley student impact on housing prices in Berkeley.
Typically these articles paint a picture of students rolling in as if they were forced into a 3000/mo condo.
Typically these articles paint a picture of students rolling in as if they were forced into a 3000/mo condo.
$1500/mo for a single room where you share a bathroom seems like a lot to me. Not $3000 but still a _lot_ for a college student imo. $1000/mo to share a room of 4? Wow!
According to http://www.housing.berkeley.edu/policies and other related pages online it appears that a student only receives this room from approximately August 15 to May 14, with a mandatory move-out for three weeks during Christmas break. That is only ~250 days of housing.
Thus, the price of a quad room is even more, at ~$1,580/month, disregarding the inconvenience of the move-out. The single room with shared bathroom works out to ~$2,200/month. In-suite is more, at ~$2,400/month.
Thus, the price of a quad room is even more, at ~$1,580/month, disregarding the inconvenience of the move-out. The single room with shared bathroom works out to ~$2,200/month. In-suite is more, at ~$2,400/month.
I think it's worth actually reading the piece of legislation for the housing fee: http://www.ci.berkeley.ca.us/Clerk/City_Council/2017/06_June...
From what I've gathered, the additional fee is designed to incentivize developers to include at least 20% affordable housing units in new projects. If you're building less than 20% affordable housing, you pay a sliding-scale fee. That money goes to supporting staff in the city that monitor and enforce affordable housing regulations.
I can definitely see the opposing policy argument here: just remove incentives on developers and let the market figure it out. However, I don't think Item #53 is some kind of scheme to keep housing unaffordable on the part of home owners.
I wasn't able to find the de-zoning item in the agenda, if anyone knows which one it is I'd definitely give it a read. Full agenda here: http://www.ci.berkeley.ca.us/Clerk/City_Council/2017/06_June...
From what I've gathered, the additional fee is designed to incentivize developers to include at least 20% affordable housing units in new projects. If you're building less than 20% affordable housing, you pay a sliding-scale fee. That money goes to supporting staff in the city that monitor and enforce affordable housing regulations.
I can definitely see the opposing policy argument here: just remove incentives on developers and let the market figure it out. However, I don't think Item #53 is some kind of scheme to keep housing unaffordable on the part of home owners.
I wasn't able to find the de-zoning item in the agenda, if anyone knows which one it is I'd definitely give it a read. Full agenda here: http://www.ci.berkeley.ca.us/Clerk/City_Council/2017/06_June...
You're going to read a page full of comments that agree with this, which is great. But you need to change it. You need to join an organization that will show you how to fight for policies that make our cities open to all. Find your local pro-housing organization and join it. Let people live where they want.
There is an answer here: move slowly. Add a little bit of dense housing and show home owners that the price of their housing isn't affected. Continue to do so over many years to allow people who spent a lot of $$$ to get into the housing market to get out w/o losing a lot of investment. Rapid change is the big enemy and what people fear here -- and why liberals end up voting against very progressive policies...
I've always seen this kind of unhinged NIMBYism as a backdoor passive aggressive way to implement housing discrimination, though more based on class than race. It's a way of making sure the "wrong people" (poor people, usually minorities) can't live there.
I almost have more respect for all the neo-fascists who are just openly racist and elitist. At least they're being honest about how they feel.
I almost have more respect for all the neo-fascists who are just openly racist and elitist. At least they're being honest about how they feel.
Class is often backdoor racism too. Structural racism is a huge driver of class division in the US.
Is there a good place to read more about that?
I haven't seen a good study on teasing apart cultural, class, and racial discrimination in terms of contribution to outcomes.
I haven't seen a good study on teasing apart cultural, class, and racial discrimination in terms of contribution to outcomes.
Ta-Nehisi Coates covered it in both depth and breadth in this article: https://www.theatlantic.com/magazine/archive/2014/06/the-cas....
Class divisions due to race were cemented by slavery, jim crow, redlining, and the criminal justice system. Nimbyism parallels redlining in certain ways now that I think about it.
Class divisions due to race were cemented by slavery, jim crow, redlining, and the criminal justice system. Nimbyism parallels redlining in certain ways now that I think about it.
This hidden racism is rampant among the leftists. They start their policy-making by assuming that minorities can't do certain things. They make themselves feel better by telling themselves they are helping out the disadvantaged. But they really have a disdain for minorities. They don't see them as capable citizens, even when those things are basic.
Example: they think Voter ID laws are racist because they think black people and other minorities can't find or get to a DMV or don't have internet [1]
They want artisanal-everything, Whole Foods and similar which is also a way to push out those that can't afford those things. I hear them talk about moving to these hipster places that are "up and coming". I know what they really mean. A gentrifying place where they can be surrounded by people just like them, with the same views, the same interests, similar occupations and similar social status.
[1] https://pjmedia.com/video/what-berkeley-liberals-think-of-vo...
Example: they think Voter ID laws are racist because they think black people and other minorities can't find or get to a DMV or don't have internet [1]
They want artisanal-everything, Whole Foods and similar which is also a way to push out those that can't afford those things. I hear them talk about moving to these hipster places that are "up and coming". I know what they really mean. A gentrifying place where they can be surrounded by people just like them, with the same views, the same interests, similar occupations and similar social status.
[1] https://pjmedia.com/video/what-berkeley-liberals-think-of-vo...
Students don't vote in city elections for the most part.
The city council represents the homeowners and long time residents. The homeowners want their property values to go up, so most of them oppose more housing. The long time residents inexplicably hate students and "what the students do to this city" despite the fact that the University was there before every single person who live there now.
So the city council does everything it can to keep those property values high, since the students are a captive audience and will rent no matter what, and for the most part don't care what the cost is because their upper middle class parents and/or the federal government is picking up the bill until they graduate.
I personally do my small part by keeping the rent on our place below market, as close to our actual costs as possible. The appreciation on the property value is nice, but the steady income is really what Berkeley property is good for. In 19 years I've had three months of vacancy, and two of those were because I was renovating and one was because my tenants left in a odd month.