POPULATION BOOMS + HOUSING LAGS = PRICES SKYROCKET

Contact: Scott Macdonald

Office of Senator Denise Ducheny

 (310) 996-2671

FOR IMMEDIATE RELEASE

May 3, 2007

POPULATION BOOMS + HOUSING LAGS = PRICES SKYROCKET

LOS ANGELES – A new study that shows population in California hitting record levels also reveals why so much of that population can’t afford to buy a home.

Supporters of the Housing Affordability Act, SB 303-Ducheny (D-San Diego) said the reported housing starts lagged so far behind what is needed to house the population gain that 2006 simply added to California’s housing shortage, which is a primary cause of ever-rising prices.

Figures from the California Department of Finance reveal that the state’s population jumped by 470,000 last year, an increase of 1.3 percent bringing the total population to nearly 37.7 million.

Notably, the City of Los Angeles surpassed the 4-million mark by adding 37,658 residents, yet only 10,239 new residences were built in L.A.

“To keep pace with that population growth, the City of Los Angeles would need to build thousands more new homes and rental units,” said Jeff Loustau, executive director of the California Housing Consortium.  “By falling behind the population increase, the city’s housing shortage continues to grow.

            “This is not a problem for L.A. only, it is being repeated throughout the state.  The ever-growing shortage in housing is a prime cause of our exorbitant and unreachable costs of home ownership.”

            The California Housing Consortium is one of more than 50 diverse organizations across the state that support the Housing Affordability Act.

            SB 303 will require cities to identify the necessary land and give it appropriate zoning to meet the housing needs for all income levels over the next five years.

            “By not building the housing to meet our population growth, we are forcing people who perform critical jobs – teachers, firefighters, blue collar workers and others – to live hour-plus commutes from their employment,” said Loustau.  “This puts a strain on families and jobs that is not sustainable.  Something has to give.

            “SB 303 simply requires a realistic approach to our existing circumstances.”

            The Housing Affordability Act has passed through two Senate committees with unanimous votes.  It will next be heard in the Appropriations Committee May __.

            Organizations supporting SB 303 include the California State Firefighters Association, Peace Officers Research Ass’n of California (PORAC), California Federation of Teachers, California Business Roundtable, California Housing Consortium, Congress of California Seniors, California Black Chamber Foundation, Cal-Nevada Conference of Operating Engineers, California Council of Churches Impact, California Major Builders Council, AFSCME (Association of Federal, State, County and Municipal Employees), California Hispanic Chamber of Commerce and the California Council for Environmental and Economic Balance.