ARTICLE
As many of you know, May was Affordable Housing Month. It was a very successful month of community events, groundbreaking ceremonies, housing seminars on all aspects of the housing policy spectrum — financing, project planning and development, zoning and regulatory requirements, and direct advocacy for more housing projects to address our region's needs. There are too many organizations to list here who led and participated in the month-long educational and informational exercise, but I will mention one with biased involvement: Housing Santa Cruz County (HSCC) where I play a small role as a board member. You can access the HSCC website here: https://www.housingsantacruzcounty.com. HSCC kicked off Affordable Housing Month in early May with an afternoon reception hosted at the Sesnon House on the Cabrillo College campus. I was not able to attend because of family commitments but from what other board members and attendees told me, it was a huge success of sounding the emergency alarm that the housing crisis was front and center in our county as well as throughout California. Guest speakers included a who’s who of public officials representing federal, state and local government. I won’t list them here to ensure that I don’t miss anyone. Each public sector speaker passionately told the overflow crowd on the Sesnon House patio courtyard how important the work of grassroots organizations can make progress on one of the most important — if not the most important -- policies we face today. Each elected official and/or staff representative stated, to paraphrase their comments, “I stand with you in this collaborative effort to address affordable housing and the tangible and intangible issues that hinder us from solving this decades-in-the-making problem.” As each speaker received warm applause of gratitude — if you were in the audience I’m told that there was some suspense in how the wonderful affordable housing kickoff would conclude. I encourage you to listen to Fred Keeley’s closing comments as he thanked every organization and everyone in attendance, lauded the grassroots coalition, praised the support from our public officials, noted how we got here and the long road ahead for each city and the county to meet our State Regional Housing Needs Assessment requirements, the legislative tools from Sacramento to prod the local government to react and produce more housing — reluctantly in some cases; work to rezone and modify City and County General Plans, but the highlight of his remarks directly pointed to our leaders in Sacramento. I will leave you in suspense so you will listen to his comments: https://www.youtube.com/watch?v=H9eENfhQDeE. This is important so we can better understand how housing plays a significant role in our economy. Access to housing, or lack thereof, is impacting our region and our residents. In the past couple of weeks, I have heard or read economic and workforce reports that paint the complexity of our economy as it is tied to jobs, workforce and economic output. Delivering a data-driven economic analysis at MBEP’s 8th Annual Economic Outlook on May 20, economist Christopher Thornberg said the gap between the public narrative and the objective analysis of actual data has many Americans believing that the U.S. economy is in far worse shape than it actually is. But ultimately, the biggest driver to economic well-being has to be housing, and particularly so here in the Monterey Bay region, said Thornberg, founding partner of Beacon Economics and director of the UC Riverside School of Business Center for Economic Forecasting and Development, who titled his presentation “The Post-Covid New World Order: What Does It Mean for Monterey Bay?” Watch the video here or access slides here. In reading MBEP’s press release — Thornberg’s insightful comments state what we know is a growing problem added by the pandemic and work-at-home options. Housing is the Achilles heel of the Monterey Bay region, an area with so much demand for its quality of life and natural beauty, and that demand will likely continue to climb as an increasing number of office jobs — by some estimates as much as 30% — shift permanently to work-from-home, opening up opportunities for people willing to face once-a-week commutes to the even-pricier Bay area and San Jose markets. Retirees don’t want to leave such a beautiful place, employers can’t meet their workforce needs, and all of it comes back down to housing, says Thornberg. The solution for a region with so many competing demands lies in embracing multifamily housing to meet the region’s massive housing shortfall. “And for local policymakers who want to see the Central Coast continue to thrive? It’s all in that multifamily space,” says Thornberg. “Build it and your economy can thrive.” Last week, the Santa Cruz County Workforce Development released the 2022 Santa Cruz County State of the Workforce Report (SCCWDB REPORT 2022). The report was commissioned by BW Research Partnership. Citing from the executive summary and introduction: “The Santa Cruz County Workforce Development Board engaged BW Research to develop this 2022 State of the Workforce Report. While this report has historically used a range of metrics to capture the current state of the workforce and economy of Santa Cruz County, this year’s report has particular importance as the local, and global, economy continues to recover and evolve from the disruptions of the COVID-19 pandemic. These disruptions have also reshaped labor markets and the balance of power between employers and employees, resulting in new and additional challenges as workers and employers try to find and match with one another. The findings of this report highlight these disruptions and include deep dives into some industries in Santa Cruz County that have seen the greatest workforce disruptions: Healthcare, Tourism and Hospitality, and Agriculture.” The summary of key findings: > The Santa Cruz County labor market has shrunk in size. In December 2021 there were 6,400 fewer workers than in December 2019, yet the unemployment rate in December 2021 is roughly the same (5.4%) as it was two years prior (5.2%). This represents nearly a 5% decline in workers over a two-year period. > Job quality in Santa Cruz County has improved over the last six years, from 2015 to 2021. There has been an increase in the proportion of higher-paying, higher-skill jobs in the county and a decrease in lower-paying, low-skill jobs. > The industries with the lowest average annual wages per worker all experienced declines in employment between 2015 and 2021, while many better-paying industries saw growth. > Santa Cruz County residents have changed their shopping and employment behavior, and they have not returned to pre-pandemic patterns. > The healthcare industry has seen significant disruption. > The pandemic accelerated the decline in Agricultural employment in Santa Cruz County. > Accommodation and Food Services was the industry that saw the largest decline in employment during the height of the pandemic, though the industry had largely adapted and recovered by the start of 2022. Summary of Key Recommendations: > Consider initiatives to increase labor force participation and pull residents from the employment sidelines. > Support specific workforce attraction and retention efforts for the healthcare and hospitality industries. > Continue to assess and compile the emerging employment skills and pathways in agriculture. > Emphasize education and workforce development efforts among younger adult residents in South Santa Cruz County. (There are three specific recommendations in the report.) > Promote efforts that will expand affordable housing options around Santa Cruz County’s work and transit hubs. I encourage you to review, listen and read these reports. They offer an inside view of the problems facing our Central Coast and offer recommendations and possible short- and long-term solutions. The key takeaway for me — if the reports are telling us something it is to respond quickly and get ahead of the issue before it is too late. In an article that I wrote probably 4 years ago, I did a deep dive into the local labor force and Santa Cruz County’s aging population. The new report only increases the urgency for Santa Cruz County to diversify our labor sectors, increase job creation at all levels through both higher education and skills-ready training in the trades. And the key point is housing, housing and housing. If we don’t have the right mixture of affordable housing and workforce housing we are headed on a downward trajectory that will harm our local economy which will lead to reduced revenue streams for public sector service priorities.
As many of you know, May was Affordable Housing Month. It was a very successful month of community events, groundbreaking ceremonies, housing seminars on all aspects of the housing policy spectrum — financing, project planning and development, zoning and regulatory requirements, and direct advocacy for more housing projects to address our region's needs. There are too many organizations to list here who led and participated in the month-long educational and informational exercise, but I will mention one with biased involvement: Housing Santa Cruz County (HSCC) where I play a small role as a board member. You can access the HSCC website here: https://www.housingsantacruzcounty.com.
HSCC kicked off Affordable Housing Month in early May with an afternoon reception hosted at the Sesnon House on the Cabrillo College campus. I was not able to attend because of family commitments but from what other board members and attendees told me, it was a huge success of sounding the emergency alarm that the housing crisis was front and center in our county as well as throughout California. Guest speakers included a who’s who of public officials representing federal, state and local government. I won’t list them here to ensure that I don’t miss anyone. Each public sector speaker passionately told the overflow crowd on the Sesnon House patio courtyard how important the work of grassroots organizations can make progress on one of the most important — if not the most important -- policies we face today.
Each elected official and/or staff representative stated, to paraphrase their comments, “I stand with you in this collaborative effort to address affordable housing and the tangible and intangible issues that hinder us from solving this decades-in-the-making problem.” As each speaker received warm applause of gratitude — if you were in the audience I’m told that there was some suspense in how the wonderful affordable housing kickoff would conclude. I encourage you to listen to Fred Keeley’s closing comments as he thanked every organization and everyone in attendance, lauded the grassroots coalition, praised the support from our public officials, noted how we got here and the long road ahead for each city and the county to meet our State Regional Housing Needs Assessment requirements, the legislative tools from Sacramento to prod the local government to react and produce more housing — reluctantly in some cases; work to rezone and modify City and County General Plans, but the highlight of his remarks directly pointed to our leaders in Sacramento. I will leave you in suspense so you will listen to his comments: https://www.youtube.com/watch?v=H9eENfhQDeE.
This is important so we can better understand how housing plays a significant role in our economy. Access to housing, or lack thereof, is impacting our region and our residents. In the past couple of weeks, I have heard or read economic and workforce reports that paint the complexity of our economy as it is tied to jobs, workforce and economic output. Delivering a data-driven economic analysis at MBEP’s 8th Annual Economic Outlook on May 20, economist Christopher Thornberg said the gap between the public narrative and the objective analysis of actual data has many Americans believing that the U.S. economy is in far worse shape than it actually is. But ultimately, the biggest driver to economic well-being has to be housing, and particularly so here in the Monterey Bay region, said Thornberg, founding partner of Beacon Economics and director of the UC Riverside School of Business Center for Economic Forecasting and Development, who titled his presentation “The Post-Covid New World Order: What Does It Mean for Monterey Bay?” Watch the video here or access slides here.
In reading MBEP’s press release — Thornberg’s insightful comments state what we know is a growing problem added by the pandemic and work-at-home options. Housing is the Achilles heel of the Monterey Bay region, an area with so much demand for its quality of life and natural beauty, and that demand will likely continue to climb as an increasing number of office jobs — by some estimates as much as 30% — shift permanently to work-from-home, opening up opportunities for people willing to face once-a-week commutes to the even-pricier Bay area and San Jose markets. Retirees don’t want to leave such a beautiful place, employers can’t meet their workforce needs, and all of it comes back down to housing, says Thornberg. The solution for a region with so many competing demands lies in embracing multifamily housing to meet the region’s massive housing shortfall. “And for local policymakers who want to see the Central Coast continue to thrive? It’s all in that multifamily space,” says Thornberg. “Build it and your economy can thrive.”
Last week, the Santa Cruz County Workforce Development released the 2022 Santa Cruz County State of the Workforce Report (SCCWDB REPORT 2022). The report was commissioned by BW Research Partnership. Citing from the executive summary and introduction: “The Santa Cruz County Workforce Development Board engaged BW Research to develop this 2022 State of the Workforce Report. While this report has historically used a range of metrics to capture the current state of the workforce and economy of Santa Cruz County, this year’s report has particular importance as the local, and global, economy continues to recover and evolve from the disruptions of the COVID-19 pandemic. These disruptions have also reshaped labor markets and the balance of power between employers and employees, resulting in new and additional challenges as workers and employers try to find and match with one another. The findings of this report highlight these disruptions and include deep dives into some industries in Santa Cruz County that have seen the greatest workforce disruptions: Healthcare, Tourism and Hospitality, and Agriculture.”
The summary of key findings:
Summary of Key Recommendations:
I encourage you to review, listen and read these reports. They offer an inside view of the problems facing our Central Coast and offer recommendations and possible short- and long-term solutions. The key takeaway for me — if the reports are telling us something it is to respond quickly and get ahead of the issue before it is too late. In an article that I wrote probably 4 years ago, I did a deep dive into the local labor force and Santa Cruz County’s aging population. The new report only increases the urgency for Santa Cruz County to diversify our labor sectors, increase job creation at all levels through both higher education and skills-ready training in the trades. And the key point is housing, housing and housing. If we don’t have the right mixture of affordable housing and workforce housing we are headed on a downward trajectory that will harm our local economy which will lead to reduced revenue streams for public sector service priorities.