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For those over 65 on a limited income |
Those looking to take advantage of housing programs |
For those who cannot afford to live in the communities they serve |
Opportunities include renting, leasing, and non-profit housing |
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WHY IS CALIFORNIA NEXT-TO-LAST IN HOMEOWNERSHIP?
The American Dream of Homeownership is a reality in most of America. Over 68% of the population own their own homes. The American Dream is just as strong in California. But the reality is not. Just 56% of Californians own their own homes - only New York has a lower rate. And only an estimated 40% of Latinos and African Americans own their own homes.
If Californians had the same homeownership rate as the rest of the nation, there would be 1.5 million more homeowners and over 2 million additional, well-paying jobs.
And, California would not be facing such high unemployment, reductions in wages, and the worst budget crisis in history. The housing crisis in California is characterized by high demand and inadequate supply, which has led to exceedingly inflated home prices. For example, the median price of a home in most of California is almost $300,000 and far more in the Bay Area, Silicon Valley, Orange and San Diego counties. In comparison, the national median priced home costs $161,500 or one-third that of the Bay Area.
In most of the heavily populated areas of California, the poor cannot aspire to own a home. And for most of the middle class, it is a vanishing dream. In the Silicon Valley, for example, it would require the combined wages of three school teachers or three police officers to afford a median priced home ($535,000).
Is this housing shortage due to a lack of land? Hardly, since California is the third largest state by area in the nation. It is estimated that there are more than two million acres of readily usable land to build homes in California, including over 100,000 in-fill sites that alone could produce a million units or more of new housing. No one has an answer that will fully resolve this housing crisis.
Yet, for many decades the median home price in California was the same as the rest of the nation and homeownership was a reality for most Californians. And this occurred despite a tripling of the population between the end of the Second World War and the late 1980’s.
How can we make the American Dream a reality in California?
This ad is paid for by a unique combination of community groups that represent residents shut out of homeownership and financial institutions committed to affordable housing for all and to ending the minority homeownership gap. The community groups include: Greenlining Institute (a multi-ethnic coalition), Latino Issues Forum, California Black Chamber of Commerce, the Latin Business Association, the National Council of Asian American Business Associations, First AME Church, West Angeles Church of God in Christ, National Black Business Council, TELACU, Hermandad Mexicana Nacional, Black Business Association, Antioch Baptist Church, and Allen Temple Baptist Church. Participating financial institutions include: Washington Mutual, Fannie Mae, Wells Fargo, Union Bank, and Bank of the West. |
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Cost of Median Home in: • Atlanta, GA: $169,700 • Washington D.C.: $187,900 • Silicon Valley, CA: $535,000 (March 2003 Sacramento Business Journal) |
CALIFORNIA HOMEOWNERSHIP FACTS
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In San Francisco, the least affordable city in the nation, only 12% of residents can afford to buy a median priced home.
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Rate of Homeownership: • Nationwide: 68% • Mississippi: 72.3% • California: 56% |
Affordability Index (percent of population that can afford a median priced home): • Nationwide: 53% • Texas: 55% • California: 31% |
There is an estimated 1.5 million unit gap between housing supply and demand in California, and this gap is increasing by as much as 150,000 additional units each year. |
For questions or information please contact The Greenlining Institute at:
questions@greenlining.org • www.greenlining.org
