The Bay Area is a great place to live.
But throughout the region and Santa Clara County, there just isn’t enough housing for all income levels.
Santa Clara County will need to produce 129,927 housing units for the eight-year period between 2023 to 2031.
While some communities have more jobs, and some have less, overall, we haven’t built enough housing in the past 30 years to keep a balance with the number of jobs we keep adding.
Our population is also growing naturally – more people are living longer and our children grow up and move out into homes of their own.
All this means that more housing is needed to keep things in balance, and not having enough housing across all incomes has meant rents and prices are higher.
Why do we need more affordable housing?
While a lot has been accomplished since the last round of Housing Element updates, the jurisdictions in Santa Clara County have collectively fallen far short of goals for new housing to serve moderate, low, and very-low-income households. While housing production for above-moderate income households has substantially exceeded the 2015-2023 RHNA targets, less than 60% of the moderate-income units needed have been permitted, and less than 13% combined of needed low and very low housing units have been permitted.
Not everyone who needs affordable housing qualifies for programs
Affordable housing programs are generally for those who earn 80% or below the area’s median income. For Santa Clara County the median is $151,300 for a family of four, so to qualify for one of these programs you’d need to make below $117,800 a year for a family of four.
Housing is expensive in Santa Clara County
The San Jose metropolitan area which includes Santa Clara County is one of the two most expensive housing markets in the United States based on median monthly housing costs. The burden of scarce resources and rising housing costs are especially heavy on renters.
Affordable rent is hard to find
According to recent data from the US Census, almost 1 in 4 renters in Santa Clara county spend more than 50% of their income on rent.
Source: Joint Venture Silicon Valley, 2021.
Safer housing so all can thrive
1 in 4 renters is living in overcrowded housing – meaning more than one occupant per room, not including bathrooms or kitchens.
Sustainable options are needed
Despite millions in emergency housing aid having been distributed across the county since April 2020, the need for additional funding for affordable housing is still large. Renters already paying a lot toward rent have seen little relief.
The Bay Area is known throughout the country as being an expensive place to live.
The median income in Santa Clara County – meaning the middle spot between the lowest and highest wages – is $105,900 for a single person. Some are making a lot more than others and wages for many haven’t kept up with how costly it is for housing in our economy.
We all rely on our essential service workers
Many lower wage jobs in our area don’t pay enough for workers to afford rent without being cost-burdened.
THE IMPACT OF INEQUALITY OF WAGES
People are spending too much of their income on housing
This has resulted in overcrowding, or people living with more roommates or family members than the home can hold. It can also mean people stay in unsafe or unhealthy living conditions because they have no other option.
People are moving farther away
This has resulted in longer commutes to work for those who are moving and more traffic in our communities due to the increased commuting.
People are leaving altogether
Sometimes, people can no longer make the direct and indirect costs of traveling far for work pencil out, and they leave our communities for good, which can have a lot of ripple effects, like your kid’s favorite teacher or your dental hygenist leaving the community.
It is easier to meet the need for market-rate housing because developers will build it and those who can afford it will pay for it. However, it is a bit more complicated when trying to make enough low to moderate-income housing. These types of homes require more subsidies or assistance from governments, and there just isn’t enough to go around.
THE SOLUTION
There is a lot of housing between large, single-family homes and apartment complexes that have been here all along.
Many types of housing are possible in your community and likely already exist in your neighborhood. You might live next to one, in one, or pass by one every day.
Single family home with an ADU
Duplex: two attached homes with individual entries
Triplex or Fourplex: 3-4 attached homes with shared or individual entries
Cottage Cluster: a group of small detached homes with a shared courtyard
Live-work: home above a storefront in a commercial zone
Low rise: 2-3 stories with a shared entry
Mid-rise: 3-4 stories with a shared entry
High-rise: 5+ stories with a shared entry (usually in downtowns or higher density zones)
Historically, these types of homes were frequently built, but somewhere along the way, became less common in favor of single-family homes.
Learn more about small housing
Accessory Dwelling Units (ADUs) are an increasingly popular way to create more housing in existing neighborhoods.
ADUs are flexible spaces added to existing homes that can house family, provide additional revenue as a rental property, or be used later in life for home health care or for downsizing from the main home. State laws have made them allowed in every city and town and easier to build. To learn more about ADUs, as well as small homes, visit the Casita Coalition.
Some people refer to duplexes, triplexes/fourplexes, townhomes, cottage clusters and live-work homes as “Missing Middle Housing.”
This is a term created by Dan Parolek at Opticos Design here in the Bay Area. To learn more visit here. These homes can offer young families, workers, students, and our aging population more options when just starting out or transitioning to something smaller.
All types of small homes aren’t necessarily affordable - that will depend on the market, the landlord, or if they include below market-rate units or ownership opportunities. However, allowing for more housing to be added to communities can increase the supply, which can help us balance things out.
Creating more housing—and more diverse housing choices—means:
Young families can find an affordable starter home
Young adults moving out of their childhood home and into the housing market can stay in the cities they grew up in
Our aging population will have more options for retirement, including downsizing, providing housing for on-site health or home care, and staying in their communities
Workers - teachers, firefighters, health care workers, essential workers - can find homes near job centers (which will reduce traffic!)
Your children and grandchildren can stay near you in the communities they feel a part of
More people will have more opportunities, across incomes, to rent or own homes in the places they live, work and love