Vidya Sethuraman
India Post News Service
According to the report by Harvard University’s Joint Center for Housing Studies (JCHS), throughout the country, many rising housing costs are attributable to shrinking housing inventory that favors consumers wealthy enough to make cash offers on homes or those with savings substantial enough to cover both down payments and closing costs.
The widening gap is more acute in California. EMS special briefing on June 24 explored housing in post-pandemic California as moratoriums expire, renters and landlords alike face mounting debts, and rural areas become the new hotbed for building mansions rather than low income housing.
California has some of the most expensive rents in the country affordable and a housing shortage. About 25% of California’s renters pay at least half of their income on housing costs, a figure that includes rent and utilities, according to the California Department of Finance. Even before the COVID-19 pandemic, over 60% of Californians viewed housing affordability and homelessness as big problems in their parts of the state.
Tina Rosales, Policy Advocate, Western Center on Law & Poverty gave the key trends to watch in California housing. Eviction moratorium, equitable development and legal services with respect to the eviction are the key trends to watch for.
California will ban evictions for unpaid rent through the end of September and pay off all back rent for eligible tenants under a deal announced by Gov. Gavin Newsom and legislative leaders. California has a $5.2Bn plan to pay off unpaid rent accrued during the pandemic most of which has not gone out in enough quantities, said Tina. We are working with advocating agencies and expect to see an uptick in the numbers going up in a few months, added Tina.
We need over 1.2 million very low housing units in California and this should be achieved without displacing people of color and sustaining the need. But these houses should be constructed in a fair manner to reduce the impact on ethnic minorities and disadvantaged communities. There should be more funding for the community-based organizations to help people of color.
Sara Kimberlin, Senior Policy Analyst, California Budget and Policy Center said that from the current data, the groups affected by the maturity of mortgage and rent delay orders are mainly low-income people in California.
Two-thirds of California’s income below the poverty line are tenants, most of who are Latinos, African Americans and Native Americans and undocumented immigrants. Kimberlin said that 85% of low-income households pay monthly house rent, which is higher than 30% of their income. There are still many people whose house rent exceeds 50% of their income.
On a more personal level, we have witnessed many businesses and residents taking loans, using credit, and draining savings just to make sure rent is paid on time, added Sara. We have to invest in our values by providing ongoing resources at scale to advance racial equity and creating affordable homes for people experiencing homelessness and those struggling to make ends meet.
Francisco Dueñas, Executive Director, Housing Now said that of the 730,000 rent arrears in California, at least one in eight families lost their jobs during the epidemic. He believes that housing security is the protection of health and the protection of children.
Observers believe that California’s high housing prices affect every family, not just African Americans and Latinos. Asian people and tenants also face high housing prices and high rents, and Asian landlords also face the pain of not being able to collect rent and defaulting on bank loans.
