ARTICLE
Our housing affordability is on the way up — again— as the latest reports indicate. I will continue to offer commentary on Housing - affordability, development constraints, relationship between City of Santa Cruz and the University; county and local cities and the instructive need for county-wide multi-juridictionnel strategies that bring us together as we respond to the interrelationship between housing, transportation and infrastructure. The Santa Cruz Area Chamber is launching a listen and learn series this month as we bring legislators, housing experts, economists and others from housing arena to offer possible solutions to our complex housing situation here on the central coast. While our focus is on Santa Cruz County - a regional approach is a possible outcome that can help the tri-county area (Monterey, Santa Cruz, Benito County), and to lesser but critical extent - Silicon Valley. On June 30th, state Senator Scott Wiener will be joining us to discuss his legislation - SB 35 as one of many legislative options to help California meet our housing needs. You can register for the lunch event by clicking on this link. In Wednesday’s Santa Cruz Sentinel, our local Santa Cruz reporter, Jondi Gomz, writes that Santa Cruz County's housing prices hit a record high as the median priced home is now $830,000 (read more here). The trend throughout the greater Bay Area shows a remarkable steady price climb with no end in sight because of the strong economy — fueled largely by Silicon Valley. The median price for a single-family home in Santa Cruz County was $830,000, topping the mark of $827,000 in August, and increasing from $775,000 a year ago, according to Gary Ganges of Real Options Realty, who tracks the numbers. This is the first time the median price — the midpoint of what sold during the month — has exceeded $800,000 for six straight months. In the northern part of the Bay Area, the cost of the median priced home is not reaching the stratosphere like it is here, but prices are rising. Santa Rosa, California home values have gone up 6.7% over the past year and Zillow predicts they will rise 0.3% within the next year. The median list price per square foot in Santa Rosa is $367, which is lower than the Santa Rosa Metro average of $398. The median price of homes currently listed in Santa Rosa is $580,000. According to Zillow which tracks housing prices throughout the country the median home value in Petaluma is $645,300. Petaluma home values have gone up 7.8% over the past year and Zillow predicts they will rise 0.7% within the next year. The median list price per square foot in Petaluma is $394, which is lower than the San Francisco Metro average of $497. The median price of homes currently listed in Petaluma is $735,000. The median rent price in Petaluma is $2,775, which is lower than the San Francisco Metro median of $3,425. Closer to home in Monterey, the median home value in Monterey is $735,300. Monterey home values have gone up 9.7% over the past year and Zillow predicts they will rise 3.3% within the next year. The median list price per square foot in Monterey is $504, which is higher than the Salinas Metro average of $440. One more look at our neighbor to the North in San Mateo County, the median home value in Half Moon Bay is $1,021,500. Half Moon Bay home values have declined 1.6% over the past year and Zillow predicts they will fall 0.7% within the next year. The median list price per square foot in Half Moon Bay is $600, which is higher than the San Francisco Metro average of $497. The median price of homes currently listed in Half Moon Bay is $1,298,500. Let’s spend a few minutes on the rental side of housing — the rental markets are just as alarming: Rent Jungle tracks rental cost nationwide: rentjungle.com As of April 2017, average apartment rent within the city of Santa Cruz, is $2154. One bedroom apartments in Santa Cruz rent for $1830 a month on average and two bedroom apartment rents average $2581. As of April 2017, average apartment rent within the city of —San Jose, is $2830. One bedroom apartments in San Jose rent for $2442 a month on average and two bedroom apartment rents average $3103. Are we at the tipping point where high housing costs will far outpace the ability for our local workforce, seniors and students to maintain a job and residence in our community? Is the fact that a large percentage of our housing stock are second homes — and to some extent — short term rentals via Airbnb or VRBO? All told, since one of our major revenue sectors is tourism we are facing similar problems that occur in high cost and tourist communities such as Lake Tahoe, Vail, Steamboat Springs and other recreational resort communities. As recently as last fall Ms. Gomz wrote via a Zillow reports the median rent in Santa Cruz County was $2,014 a month, up 6.2 percent from a year ago (2015), and is expected to rise 6 percent over the next year, just behind Seattle, which is expected to lead the nation with rent jumping 7.2 percent. See the Oct. 12, 2016 article here: santacruzsentinel.com -Rental Market 2016 While today’s rental prices are down compared to October 2016, the young millennial workforce and college student population are scrambling to find housing for the summer and fall. This merry-go-round approach is not sustainable and doesn't address our high housing costs and high rental costs. This housing process is complex, and can’t be solved overnight. This is a problem that has taken thirty plus years of planning and regulatory processes that have us where we are today. The limits on available housing at all income levels presents two stark choices for Santa Cruz and long held land use policies that must be revisited. We can’t continue on the past path of limited growth and slow housing starts if we choose to be a more vibrant community. We can re-visit our planning processes, code modifications and land use zoning requirements to find a better way forward. The Santa Cruz Area Chamber and business organizations around the county are forming partnerships with other non-profits, community leaders and our public officials to create short and long term solutions to our housing and infrastructure needs. Please keep an eye out for more news worthy stories as we chart a path for our next generation of community leaders.
Our housing affordability is on the way up — again— as the latest reports indicate. I will continue to offer commentary on Housing - affordability, development constraints, relationship between City of Santa Cruz and the University; county and local cities and the instructive need for county-wide multi-juridictionnel strategies that bring us together as we respond to the interrelationship between housing, transportation and infrastructure.
The Santa Cruz Area Chamber is launching a listen and learn series this month as we bring legislators, housing experts, economists and others from housing arena to offer possible solutions to our complex housing situation here on the central coast. While our focus is on Santa Cruz County - a regional approach is a possible outcome that can help the tri-county area (Monterey, Santa Cruz, Benito County), and to lesser but critical extent - Silicon Valley.
On June 30th, state Senator Scott Wiener will be joining us to discuss his legislation - SB 35 as one of many legislative options to help California meet our housing needs. You can register for the lunch event by clicking on this link.
In Wednesday’s Santa Cruz Sentinel, our local Santa Cruz reporter, Jondi Gomz, writes that Santa Cruz County's housing prices hit a record high as the median priced home is now $830,000 (read more here).
The trend throughout the greater Bay Area shows a remarkable steady price climb with no end in sight because of the strong economy — fueled largely by Silicon Valley. The median price for a single-family home in Santa Cruz County was $830,000, topping the mark of $827,000 in August, and increasing from $775,000 a year ago, according to Gary Ganges of Real Options Realty, who tracks the numbers. This is the first time the median price — the midpoint of what sold during the month — has exceeded $800,000 for six straight months.
In the northern part of the Bay Area, the cost of the median priced home is not reaching the stratosphere like it is here, but prices are rising. Santa Rosa, California home values have gone up 6.7% over the past year and Zillow predicts they will rise 0.3% within the next year. The median list price per square foot in Santa Rosa is $367, which is lower than the Santa Rosa Metro average of $398. The median price of homes currently listed in Santa Rosa is $580,000.
According to Zillow which tracks housing prices throughout the country the median home value in Petaluma is $645,300. Petaluma home values have gone up 7.8% over the past year and Zillow predicts they will rise 0.7% within the next year. The median list price per square foot in Petaluma is $394, which is lower than the San Francisco Metro average of $497. The median price of homes currently listed in Petaluma is $735,000. The median rent price in Petaluma is $2,775, which is lower than the San Francisco Metro median of $3,425.
Closer to home in Monterey, the median home value in Monterey is $735,300. Monterey home values have gone up 9.7% over the past year and Zillow predicts they will rise 3.3% within the next year. The median list price per square foot in Monterey is $504, which is higher than the Salinas Metro average of $440.
One more look at our neighbor to the North in San Mateo County, the median home value in Half Moon Bay is $1,021,500. Half Moon Bay home values have declined 1.6% over the past year and Zillow predicts they will fall 0.7% within the next year. The median list price per square foot in Half Moon Bay is $600, which is higher than the San Francisco Metro average of $497. The median price of homes currently listed in Half Moon Bay is $1,298,500.
Let’s spend a few minutes on the rental side of housing — the rental markets are just as alarming: Rent Jungle tracks rental cost nationwide: rentjungle.com
As of April 2017, average apartment rent within the city of Santa Cruz, is $2154. One bedroom apartments in Santa Cruz rent for $1830 a month on average and two bedroom apartment rents average $2581.
As of April 2017, average apartment rent within the city of —San Jose, is $2830. One bedroom apartments in San Jose rent for $2442 a month on average and two bedroom apartment rents average $3103.
Are we at the tipping point where high housing costs will far outpace the ability for our local workforce, seniors and students to maintain a job and residence in our community? Is the fact that a large percentage of our housing stock are second homes — and to some extent — short term rentals via Airbnb or VRBO? All told, since one of our major revenue sectors is tourism we are facing similar problems that occur in high cost and tourist communities such as Lake Tahoe, Vail, Steamboat Springs and other recreational resort communities.
As recently as last fall Ms. Gomz wrote via a Zillow reports the median rent in Santa Cruz County was $2,014 a month, up 6.2 percent from a year ago (2015), and is expected to rise 6 percent over the next year, just behind Seattle, which is expected to lead the nation with rent jumping 7.2 percent. See the Oct. 12, 2016 article here:
santacruzsentinel.com -Rental Market 2016
While today’s rental prices are down compared to October 2016, the young millennial workforce and college student population are scrambling to find housing for the summer and fall. This merry-go-round approach is not sustainable and doesn't address our high housing costs and high rental costs. This housing process is complex, and can’t be solved overnight. This is a problem that has taken thirty plus years of planning and regulatory processes that have us where we are today.
The limits on available housing at all income levels presents two stark choices for Santa Cruz and long held land use policies that must be revisited. We can’t continue on the past path of limited growth and slow housing starts if we choose to be a more vibrant community. We can re-visit our planning processes, code modifications and land use zoning requirements to find a better way forward. The Santa Cruz Area Chamber and business organizations around the county are forming partnerships with other non-profits, community leaders and our public officials to create short and long term solutions to our housing and infrastructure needs.
Please keep an eye out for more news worthy stories as we chart a path for our next generation of community leaders.