California Community Builders’ Post

https://lnkd.in/gmEDZSqP Big thanks to James Rodriguez for writing this article about lower-skilled workers. He touches on the lie that lower-skilled workers make more in big cities and, thus, after expenses too. They don’t. They will figure this out and leave. Always seek your best interests. Vote with your feet. I was in San Francisco seeing a couple of the investors of Smead Capital Management We played golf together and were paired up with a single player for the round. This single player and I began discussing the economics of various income groups in America. I told him he needed to be careful how he looked at income groups because the top incomes lose 37% of their income to the federal government and the lowest income that collects no money still gets large transfer payments from the federal government. This makes their income much larger on an after tax basis. I further mentioned that the lowest income groups make close to $50,000 on federal transfer payments. He told me that there is no way that anyone can live in San Francisco on that income. I agreed with him, but I told him that this town was not indicative of America. He could not see beyond his own bubble. This is a bias that I see constantly in the investment business. Much easier to understand America away from the coastal citadels. I’ll likely write on this more.

Did you know that in a recent nationwide survey, more than 80% of participating mayors identified the lack of affordable housing as a top threat to their cities’ economic health? Or that recent research suggests that if New York City, San Francisco, and San Jose had more affordable housing, U.S. real GDP could be almost 4% higher? The national conversation often treats housing as a discrete, siloed issue, but the affordability of housing profoundly influences worker mobility, wage growth, and overall economic productivity.  My colleague Kristen Klurfield published an excellent report, available on the Bipartisan Policy Center website, which explores recent research on how the scarcity of affordable housing near job centers impacts American workers and labor markets. The report also explores various policy solutions aimed at increasing housing supply and spurring economic growth: https://lnkd.in/dD-F_ZbT 

#Housing IS a critical component of attracting #workforce & workforce IS an absolutely critical factor in successful #economicdevelopment - the National League of Cities (NLC) highlights the benefits of housing & makes recommendations in this article: https://lnkd.in/gNBzG-Nz

One of the frustrating things about cities is that it can be too expensive to live there on a middle class salary. This study showed that the DC is one of the more affordable cities for middle class workers which bodes well for this area in the future. "One key finding is that the best-performing cities typically have a more equal mix of jobs across the pay spectrum." Does this resonate? https://lnkd.in/ewFHtdxv

#Housing IS a critical component of attracting #workforce & workforce IS an absolutely critical factor in successful #economicdevelopment - the National League of Cities (NLC) highlights the benefits of housing & makes recommendations in this article: https://lnkd.in/geGcRt5C

Labour’s mandate for change is here, and we are seeing a core belief that the Government CAN and SHOULD be directing events. Here are some key trends across the #propertysector in the past few days that have caught my eye: 🏘 #Planning overhaul: can Labour do what the Conservatives haven’t been able to do for decades? Major planning changes are expected, including legal requirements for councils to rapidly identify sufficient land to meet predicted future housing needs, and a presumption in favour of development that will give local communities input into the style of new housing, but not the ability to block developments. This vision reminds me of #Poundbury, an extension of Dorchester built using the principles of new urbanism. I was always a huge fan, and have visited several times. The use of architectural styles from earlier eras like this should help grant public approval for new settlements. But I often think, it isn’t necessarily the housing at odds with locals. It is the new infrastructure alongside it, or lack thereof. Good links to town centres, enough schools, doctors and hospitals, must all be in place to support internal migration streams. Whilst this sounds like the obvious, I know first hand from moving to a new development outside of Reading that some of the things that are promised are sadly not delivered (our local primary is oversubscribed; 60 places, over 200 applications). This leads neatly on to…. 🤑 Local councils at odds with new Government’s housing boom – reports are increasing of Councils at 'dangerous turning points' in the housing crisis, urgently in need of a funding boost to build new housing and repair existing stock. This comes as City Hall has warned that hundreds of #affordablehomes are being built in London with "no one to take them," as housing associations struggle to buy them. The system used by private developers to deliver affordable homes is "creaking at the seams" due to a lack of capacity among housing associations. Will the great #socialhousing plan be at risk? 🏗 Skills shortage also a concern for #construction lag – leaders in the sector have warned it will take at least a year to start increasing housing supply, underlining the scale of the challenge facing the new Labour government. Kier needs bricks and mortar to prove his plan is working come the next election – will he do it? I hope so. 📈 #Houseprices to remain firm or rise – whilst building new homes is essential, we haven’t built enough houses for 50 years now - one or two years of a building boom won’t reverse that. And as falling interest rates and inflation are both welcome, it is the population that dictates housing values more often than not. Latest ONS population figures released this week show England and Wales at mid-year 2023 was estimated to be 60.9 million (60,854,727); an increase of 610,000 (1.0%), and the largest annual numerical increase in at least 75 years.  #PropertyInsights #PlanningRevolution

Affordable, appropriate housing is both a social and economic issue. The ability for key workers to live close to their place of work can be critical for a thriving local economy. This case study shares the key findings for research we undertook for the City of Melbourne to understand their key workers and their ability to live close to where they work. https://bit.ly/3xgMOQR

The lack of affordable housing reaches further than you might think, impacting workers, jobs, and the economy. And as NBC News recently reported, some tourist spots are feeling the impact. In a recent explainer, Kristen Klurfield delves into how housing shortages affect various aspects of American life. From limiting job opportunities to straining the economy, the ripple effects are significant and far-reaching. Explore the connections between housing affordability and economic growth here: https://lnkd.in/dD-F_ZbT 

New blog: Helping Councils improve key worker housing affordability Housing affordability is a common topic of conversation across Australia. Taking the case study of Regional Victoria, demographic consultant Nenad Petrović looks at how rising housing costs impacts an area’s ability to attract and house key workers for that region, and local government's role in this space. https://bit.ly/3RW4AiO

I do agree with this, to some extent, but again the focus is on blaming private developers and it being 'their' fault. I don't agree with this. The idea that it's not OK to make money from any market is wrong...it pays the taxes that pays for our public services. The biggest proportion of tenants in the PRS, by far, are those on benefits. That's not landlords or developers fault, it's policy failure from governments and LAs/Mayor's of all colours. I do agree that we need many more social homes to rent, but I don't agree that this can't be done through good public and private partnership. I know there are those in my network who do this already. Please post your case studies and how we could get more people to do the amazing work you do!