How Much Is Enough?: In Depth
- Lack of Housing Is Not the Problem
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Lack of Housing Is Not the Problem
One parcel at a time, Bay Area activists are pushing for land trust housing to decommodify land and take properties out of an unjust market.
The San Francisco Bay Area has long been one of the most expensive places to live in the United States. The region, home to the booming Silicon Valley tech sector and a rising number of billionaires, also has one of the highest numbers of people without homes.
The 2015 Bay Area Equity Atlas found half of San Francisco Bay Area renters spent at least a third of their income on rent, and in 2021, Joint Venture Silicon Valley reported that the median annual wage of a service industry worker, at $35,241 before tax, was just slightly higher than the $25,800 it costs to rent a local studio apartment.
It鈥檚 easy to find horror stories: paying in San Francisco; ; a . In August 2020, The New York Times recounted the story of a Guatemalan immigrant who in the Bay Area city of San Mateo. When she contracted COVID-19, she sequestered herself in a closet for days to avoid infecting her children.
And those are just the examples of people with homes. Despite the region having an , the Bay Area Council Economic Institute admitted in 2019 that 鈥渂y virtually every measure, the Bay Area鈥檚 homeless crisis .鈥
So many homeless between the Silicon Valley cities of Palo Alto and San Jos茅 that it was known as 鈥淗otel 22鈥 until lawmakers cut late-night service. After a survey found one in five students at Cupertino鈥檚 De Anza College were homeless, students advocated for . And have sprung up across Silicon Valley, including dozens clustered around a park 2 miles from Google鈥檚 Mountain View headquarters (until the city begins enforcing its new in late July).
Plenty of Homes, Not Enough Power
For many in the Bay Area, the housing experience is less about shocking headlines than it is about the inexorable rise of rents driving more low- and moderate-income residents farther and farther out from the urban centers.
Liz Gonzalez was born and raised in East San Jos茅 by parents from Jalisco, Mexico. Her mother, brother, and uncle all worked in the microchip factories then prevalent in San Jos茅, as she herself did for a period. The assembly lines were 鈥渟oul-sucking monotony,鈥 she says, but the money was good. Though rents were high, 鈥渋t wasn鈥檛 what you see right now, where there鈥檚 folks renting out rooms and garages and living rooms.鈥
Gonzalez still lives in her childhood home today, though all but three other families on her street have moved away. 鈥淎ffordability definitely factored into people moving away,鈥 she says. The U.S. Bureau of Economic Analysis reports that in the country, with , according to rental platform Zumper.
Gonzalez is one of a growing number of activists looking at ways to change the housing economy of the region. She was involved in a multiyear campaign to stop Google from constructing a huge campus in San Jos茅, a development community leaders feared would price out tens of thousands of working-class residents.
She is also president of the newly formed South Bay Community Land Trust. 鈥淭his whole statement about us not having enough housing is a myth,鈥 Gonzalez says. 鈥淲e just don鈥檛 have the kind of housing that meets people鈥檚 needs, that is affordable, because the market-rate housing is out of reach.鈥
鈥淭he only reason market-rate housing gets built at the rate it does is because they have institutional support,鈥 she explains, adding that Silicon Valley already has enough homes for all who live there today. Gonzalez believes that what鈥檚 lacking is not empty buildings but organizations to support longtime residents the way developers and city governments rush to accommodate the interests of the multinational tech firms.
The Bay Area is not an isolated case鈥攐nly the most extreme example of a crisis affecting cities across the United States. A 2019 article in the Department of Housing and Urban Development鈥檚 journal Cityscape reported that across the country, 39% of 2016 renters paid rents that would have been in the top 25% in 2000, though renter income had barely increased in the same period.
鈥淢any major American cities showed signs of gentrification and some racialized displacement between 2000 and 2013,鈥 reports a 2019 study by the National Community Reinvestment Coalition. That trend disproportionately affects Black and Hispanic tenants.
That鈥檚 resulted in higher real estate prices that median wages haven鈥檛 kept pace with. As a result, approximately 1.5 million people left the Bay Area between 2010 and 2016, the equivalent of one in five residents, according to the University of California鈥檚 Terner Center For Housing Innovation. For every person with household income above $200,000 who left the Bay Area in this period, six people with left as well. Those who moved into the area had incomes skewing significantly higher than those who moved out.
The 鈥渃risis鈥 is real, but it鈥檚 a crisis of housing ownership and affordability, a deficit not of housing stock but of popular power to constrain runaway costs. This sort of crisis cannot be remedied with construction permits or zoning laws, so community organizations are developing new answers on the ground.
Ordinary residents don鈥檛 have the political clout of tech companies and developers, and they also have been denied access to the skills necessary to acquire and manage residential properties. But activists are beginning to wield what power they do have. In 2019, to preserving affordable housing with community land trusts and cooperatives. Then in 2020, to donate 50 houses to a new community land trust in that city, although activists now say the city hasn鈥檛 fulfilled that promise.
Changing the Economic Model For Housing
The power differential is why community groups are experimenting with alternative models of land ownership they believe are the key to stopping displacement and homelessness鈥攚ithout the construction of a single new unit of housing.
Groups such as the South Bay Community Land Trust and the East Bay Permanent Real Estate Cooperative see removing land from the speculative market, not advocating for new development, as the key to long-term accessibility. New land trusts are just one example of an organizing model that鈥檚 spread across the country since its birth as a way to as retaliation for participation in the civil rights movement.
鈥淔rom our model, believing that housing is a human right,鈥 says Gonzalez of the South Bay trust, 鈥渨e have to act like it and do everything possible so that folks are housed in a dignified way.鈥
Community land trusts typically comprise numerous properties, with the land held in trust by a community-based nonprofit organization, even as the housing units are sold. Many such trusts control the rate at which sale prices for homes in the trust can grow per year, ensuring owners can build equity while the units remain affordable for new buyers.
Expanding the trust entails decommodifying land, one parcel at a time.
The East Bay Permanent Real Estate Cooperative uses the cooperative model instead of a nonprofit trust to remove land from the market. The since its launch in 2018, according to East Bay Magazine. After starting two cooperative projects, the collective is now undertaking an ambitious effort to revitalize a historic West Oakland business corridor once known as 鈥渢he Harlem of the West.鈥澛犫淲e know that buying one asset is not enough,鈥 says Noni Session, the East Bay group鈥檚 executive director. 鈥淲e鈥檙e trying to galvanize the community around the entire corridor.鈥 Organizers envision a featuring cooperative housing, Black arts and business spaces, and a cultural arts center along Seventh Street stretching a mile and a half through the city.聽
The members of the fledgling South Bay trust have a similarly broad vision even as they continue negotiations to acquire their first properties. Co-founder Sandy Perry, a minister and housing activist who worked to oppose Google鈥檚 San Jos茅 campus and who has been organizing with tenants, homeowners, and unhoused people for decades, believes decommodifying land within the trust will not only stabilize housing costs for residents but also 鈥済ive a whole community a center around which to organize.鈥
Aside from housing, South Bay trust members imagine day care centers, cultural centers, and 鈥渃enters for the community to organize and resist gentrification,鈥 Perry says.
Taking land off the speculative market in the most expensive city in the country would provide an organizing base, a means for community survival, and a symbol of hope, he says. If community members can rally around and organize in community spaces on the land trust, he hopes, they might be able to stop the next tech campus development threatening to displace the city鈥檚 residents.
The Challenge of Scale
This aspiration arises from the challenges facing groups like the South Bay trust and East Bay collective. The 12-year-old Oakland Community Land Trust has , including 28 single-family homes and five mixed-use properties, says Steve King, the group鈥檚 executive director. Redfin reports alone, with a median sale price of $921,000. And San Jos茅鈥檚 market is even hotter, with at an average price of nearly $1.3 million in the same period.
So long as large employers like Google offer generous salaries to draw prospective employees to the region, housing values will continue to rise and make new and existing housing stock even more appealing for investors, developers, and speculators. As the University of California, Berkeley’s explains, these processes work hand-in-hand: Wealthier newcomers move into a neighborhood at the same time capital gets invested in local real estate. This makes efforts to buy houses off the market increasingly urgent, but progressively more daunting, as well.
If activist organizations are unable to secure concessions from local government, however, they are left dependent on donations from individuals or foundations to purchase properties at ever-increasing market prices. The South Bay Community Land Trust鈥檚 Perry therefore envisions the organization as part of an ecosystem of community resistance against those forces.
Money shouldn鈥檛 determine whether you have a dignified home. It shouldn鈥檛 determine whether you have access to shelter.
The South Bay trust has joined with other groups to lobby for a in San Jos茅, which would provide municipal funding for nonprofit housing acquisitions. In March, following years of actions against gentrification, including the Google campaign that birthed the land trust, San Jos茅鈥檚 city council moved forward with an that could eventually include just such an ordinance.
But those small successes won鈥檛 stop the runaway acceleration of housing costs and the forces of speculation helping fuel it. Even in Silicon Valley鈥檚 overheated housing market, two 2019 government surveys found for . NPR affiliate KQED reported that , presumably as investment vehicles. Others remain empty as their to increase their value even further.
In either case, even property vacancies in the Bay Area are structured by increasing property values pegged to tech workers鈥 generous salaries. The East Bay cooperative鈥檚 Noni Session says that what鈥檚 driving up housing prices in the Bay Area isn鈥檛 an absence of dwellings, but a continued influx of well-compensated professional workers.
鈥淢ost of the tech companies have ongoing plans to import more and more labor into the urban city,鈥 Session says. 鈥淭his housing that we鈥檙e producing is really marked at the level of a high-salary tech worker.鈥
New market-rate units do little to take pressure off of lower-income housing, and instead make the region a more attractive destination for wealthy workers whose demand pushes housing costs higher still. As housing policy analyst and urban geographer Samuel Stein wrote in his 2019 book , 鈥淪imply adding housing supply does not necessarily drive down overall prices. In many cases, it does the opposite.鈥
鈥淪ilicon Valley needs another tech campus like it needs a hole in the head,鈥 Perry says. The campaign against Google鈥檚 proposed campus culminated in a where Gonzalez, Perry, and six others were arrested as the municipal government voted to sell public land to the tech giant.
Though the campaign to halt the Google development didn鈥檛 succeed, it inspired the creation of Silicon Valley鈥檚 first community land trust. It also extracted a commitment from the city government that the project would cause , and an endorsement of the utilization of community groups to attain that goal. Gonzalez and Perry hope that this will lead to support for the land trust as it begins acquiring its first properties.
When Liz Gonzalez thinks about growing the community land trust model to ensure her friends and family members can keep living in the city that raised them, she emphasizes the 鈥渃ooperation, collaboration, and education鈥 necessary to scale nonmarket land use models.
Though the South Bay Community Land Trust is still in its early stages, neither Gonzalez nor Perry would be content with the preservation of a few homes if hundreds more are priced out around them. 鈥淭he whole system of land ownership in the United States is wrong,鈥 Perry says. 鈥淯ltimately, it should be abolished.鈥
As Gonzalez puts it, 鈥淭he goal is to decommodify housing because money shouldn鈥檛 determine whether you have a dignified home. It shouldn鈥檛 determine whether you have access to shelter.鈥
CORRECTION: This story was updated at 10:42 a.m. Aug. 13, 2021, to replace an out-of-date link to the East Bay Permanent Real Estate Collective’s Cultural Community Corridor Project with the correct link. Read our corrections policy here.