By Maureen Sedonaen, CEO of Habitat for Humanity Greater San Francisco
In turbulent times, it’s often easy to forget how much we share. Safe, stable housing is something we can all agree on – it’s essential for health, work, education and community. While our culture and politics are divided at times, helping people meet their basic needs can inspire unity and collaboration.
And collaborate we must to solve the real and growing housing affordability problem in our country. Families across the nation must often choose between housing and other necessities like food, healthcare, and childcare. In California, one of the most-affected states, renters in 34 counties must earn at least twice to three times the state or local minimum wage to afford average rent payments.
While renting is increasingly unaffordable, owning a home is now quite simply out of reach for far too many. In the Bay Area, residents need an annual income of $326,800 to afford a median-priced home.
It is time to raise our voices in support of helping people become first time homeowners. Homeownership has different benefits than renting — and they’re advantages that impact all of us. Owning a home is good not only for individuals and families but also builds stability and generational wealth that will be a boon to our economy well into the future.
Homeowners contribute more to their communities, investing both energy and money in the places they live. And the stability in their housing translates into stability in their lives: They are better able to keep good jobs and move up the economic ladder, their children perform better in school, and they can build equity for the future. U.S. homeowners have average net wealth that is 5x that of renters with similar demographics. And home equity makes up the lion’s share of U.S. households’ wealth, at 34.5%. They fill our schools and local jobs.
These dynamics bring neighborhoods a cycle of upward mobility — a positive feedback loop that offers widespread positive impacts.
The housing crisis is only worsening with the significant rise in construction costs, which have increased by around 40% over the past five years and almost doubled since 2017. With 64% of new homes’ sales price attributable to construction costs, these price surges are driving home prices rapidly higher. It also costs more and more to build affordable homes, which means support for this segment of the housing market is needed more than ever.
A solution to this problem is only possible with large-scale collective action. Stakeholders from all sides must unify and collaborate: government at all levels, philanthropic and nonprofit organizations, private sector, and — perhaps most importantly — community members. We need policies, legislation, resources, and action that focus on helping people buy — and not just rent — affordable homes.
I have faith that we can find common ground across our divides when we recognize the need for accessible and affordable housing for everyone. We all want to live in safe and thriving communities full of invested, permanent residents. We all want to build an economy that lifts everyone. We all benefit when homeownership is within reach to as many people as possible.
There are a range of ways to get involved with advocating for and drawing attention to affordable housing activities. Some options are reaching out to the governor and demanding that he fully fund CalHome, volunteering with housing organizations like Habitat, and contributing financially to support this necessary work. Get involved today!
Learn more about how to support CalHome here.