The California Association of Realtors has announced a collaborative effort alongside the California Building Industry Association and Habitat for Humanity California, urging state lawmakers to make additional investments in this year’s budget that encourage new housing for homeownership.
According to CAR, the group sees the additional funding as vital to not only boost supply, but also address severe disparities in homeownership and reverse decades of exclusionary housing policies.
“California desperately needs more housing to meet the needs of diverse middle-class and low-income Californians,” Dave Walsh, President of the California Association of Realtors, said at a virtual press conference. “With a historic budget surplus, now is the time to address the racial divide in homeownership and fix California’s severe housing shortage.”
As previously reported, California’s median home price rose once again to a record $813,980 in April, with CAR estimating that only one in four Californians are able to afford to buy a median-priced home. Homeownership rates are also at their lowest in California since the 1940s, with significant disparity in homeownership across the country, as Black and Latinx Americans are twice as likely to rent compared to white Americans.
“This is about more than just housing; it’s about equity and access to homeownership for all Californians,” said Maureen Sedonaen, Chair of the Board of Directors for Habitat for Humanity California. “More than 80 percent of the families we serve through affordable homeownership at Habitat for Humanity are from communities of color. By making smart investments that pave the way for the planning and construction of new homes, we can put homeownership in reach for those who have been historically priced out of the market and for a whole new generation of Californians.”
According to CAR, of the $9.3 billion allocated to housing in Governor Gavin Newsom’s proposed May Revise budget, only $725 million, or less than 8 percent, goes toward expanding homeownership opportunities with programs such as down payment assistance.
The coalition is therefore recommending initiatives including matching grants and tax credits to complement those proposed by President Biden’s Administration, as well as a tax credit for working families who are first-time, low- and moderate-income homebuyers. Additionally, the group is calling for parity in state funding programs to assure that the construction of homeownership housing is given equal consideration.