The State of Housing Affordability

BY JORDAN KILLEBREW

The 1921 U.S. Supreme Court case of Block v. Hirsch declared that housing is a “necessity of life.” Yet across our nation, healthy and affordable homes are not readily accessible to the public. The Santa Barbara Foundation is dedicated to providing information on key community issues, such as housing affordability, which is increasingly affecting numerous sectors and reaches of life in Santa Barbara County.

The Monthly Housing Affordability Index measures whether a typical family earns enough to qualify for a mortgage loan for a home. Comparing the median-price of existing single-family homes within this index, nationally and on the county level, with data from the National Association of Realtors and the California Association of Realtors, helps to put in perspective who can afford a mortgage in these areas. The index notes that in the United States, homes average around $247,900, where in Santa Barbara County the average is $710,000. To qualify for a home loan nationally, an income of at least $46,656 is required, while in Santa Barbara County a minimum salary of $143,370 is required. Obviously, the cost of housing is at a much higher rate in Santa Barbara County than the rest of the nation, which has a significant impact on our communities.

“The problem is everywhere in the county,” said Mickey Flacks, Commissioner of the Housing Authority of the County of Santa Barbara. “We do not build enough affordable housing and, if we do, new housing goes to the highest bidder, which has made the climate a renters market. Almost all renters in a lower socioeconomic bracket in Santa Barbara are spending 40 percent or more of their income on rent.”

The disparity in housing accessibility and affordability varies across Santa Barbara County as well. In North County, there are more affordable housing rates, while in South County community members must rent and pay almost half their monthly salary due to a lack of new affordable housing developments. With money being prioritized on rent, discretionary funds are taken away from other needs to live.

“Housing is the foundation for a healthy family and the cornerstone of a healthy community,” said Rob Fredericks, Executive Director of the Housing Authority of Santa Barbara. “Housing is a cross-sector issue that affects healthcare, transportation, education, food access and so much more.”

The large number of people that commute into areas of Santa Barbara and Goleta from northern Santa Barbara County and Ventura County has caused infrastructure strain and traffic on the 101 and service roads. Additionally, with commutes of up to an hour or more, there are fewer local individuals available to sustain the local economy, as the salaries that are earned in South County are spent in other areas in our region.

Although there are many challenges in creating affordable housing options, government agencies and nonprofits are working to remedy this issue. The Santa Barbara City Council created the Average Unit-Size Density Incentive Program on July 30, 2013 to support the construction of smaller, more affordable residential units near public transit and within easy walking and biking distance to commercial services and parks. The Housing Authority of the City of Santa Barbara has programs that currently assist over 3,000 households, largely comprised of working families, seniors on fixed incomes and persons with disabilities. People’s Self Help Housing provides several programs to empower community members by providing affordable housing and community services for individuals and families, with numerous other programs to assist within the county.

“I am hopeful,” says John Campanella, Vice Chair of the City of Santa Barbara Planning Commission. “I would like to see more market-rate developers and non-profits work together and positively benefit the community.”

The Santa Barbara Foundation, with generous support from our donors, has substantially supported organizations like the Housing Authority of the City of Santa Barbara, People’s Self Help Housing and Habitat for Humanity of Southern Santa Barbara County to help bring hope to this issue. Together, we know we can do better to provide housing options for our community.

To learn more about the efforts to make housing more affordable in our County and how you can help, please contact, Rob Fredericks, Executive Director at the Housing Authority City of Santa Barbara, at RFredericks@hacsb.org.