Blogging Bayport Alameda

January 31, 2020

Stick to the status quo

Filed under: Alameda — Lauren Do @ 6:01 am

On the heels of SB50 failing to get enough votes to pass on to the Assembly, this is sort of a relevant article: Bay Area has highest income inequality in California.

From the piece:

Top income earners in the Bay Area make 12.2 times as much as those at the bottom of the economic ladder, according to new research from the Public Policy Institute of California, which analyzed 2018 U.S. Census bureau data, the most recent available.

Despite California’s strong economy, low and middle-income earners have seen fewer gains than those in the top bracket in recent decades. Incomes for families in the 90th percentile have increased 60% since 1980, PPIC found, while incomes for the 10th percentile increased by just 20% during the same time.

“It’s clear that low income families don’t seem to be able to make as much economic progress as we would like.”

 

And an earlier piece on how people are leaving California:

 U.S. Census Bureau numbers show that the middle- and lower-classes are leaving California at a higher rate than the wealthy. Many who have left in recent years say they simply couldn’t afford to stay.

The majority of people leaving reported an annual income of less than $100,000, while the state has seen an influx of those making $100,000 and more.

According to a 2018 United Way Cost of Living report, Latino and African-American households struggle at the highest rates in California; the cost of housing is their largest burden.

Between 2010 and 2017, negative domestic migration to the state increased annually, according to the California Association of Realtors. In the same period, the median cost of a home in California doubled; in the Bay Area, it tripled.

“About 32% of households in California can afford to buy a median-priced home, which is around $600,000,” said Oscar Wei, the realtor association’s senior economist and director of research. “Compared to 2012, we were at 52% (across the state). In San Francisco and San Mateo only 12 or 13% of residents can afford to buy a median-priced home there.”

But I guess that some State leaders feel as though the status quo is going to magically make some jurisdictions suddenly do their part of help alleviate the housing crisis.  I mean, look at how quick Alameda was to embrace ADUs…oh wait…it didn’t.  It was due to State legislation that enabled the rules to be relaxed to a point where it was actually feasible to consider an ADU in Alameda.

 

2 Comments »

  1. Don’t worry, Barnie will level us out.

    Comment by Jack — January 31, 2020 @ 7:35 am

  2. You managed to write an entire article about housing without mentioning the overwhelming property and state income taxes imposed by California politicians over the last 40 years used mostly to support the “generous” pensions and salaries of state workers. So many people are leaving that California may lose 2 or 3 Congressional seats after the upcoming census. The exodus has little to do with “income inequality” as our economy and wages have never been better. If foolish progressives manage to repeal Prop 13, watch the exodus increase.

    By the way, building an ADU will raise your property taxes, and Alameda will cap the rent you can charge at about half of what the state would allow. Don’t hold your breath for an explosion of ADUs to solve the housing crisis.

    Comment by Nowyouknow — January 31, 2020 @ 7:58 am


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