Market-rate housing is just as important as subsidized housing
October 15, 2013 6 Comments
Controversy swirls around the Wincup apartment development in Corte Madera, and the IJ has published a piece detailing every complaint, from the size to the traffic to the fact that it won’t be “affordable” housing.
While there are problems with the piece (they couldn’t find one person who liked it? Or someone who was interested in renting there?), the myth that market rate housing does not help the cause of affordable housing, brought up by a neighbor, is one that we’ve addressed here and bears repeating.
The housing market in the Bay Area is fundamentally constrained, especially at the top. There simply is not enough supply to go around, and so prices are artificially high. A house that might go for $250,000 elsewhere goes for $850,000, and an apartment that might go for $700 a month elsewhere goes for $1,500 here.
Since there’s not enough super-luxury housing for the wealthy, they look for regular luxury housing, displacing the modestly wealthy. Modestly wealthy folk, whose luxury housing is now out of their price range, look for middle-quality housing, displacing the upper-middle class, who look for lower range housing, and so on down the line until the poorest get knocked off entirely.
Traditional affordable housing tries to build housing that’s been set aside for those poorest folk, but that’s only a stop-gap. Without a functional housing market, they’ll never get enough government largesse and charity. The construction of market-rate housing, shifts some wealthier folk back up the ladder, giving space for the poor and lowering prices across the board.
Now, a single project in Corte Madera won’t do this for the whole Bay Area, but it’s counterproductive to denigrate a project for not being “affordable.” We need a stratified, healthy housing market to solve our region’s affordability problem. Market-rate housing, from ultra-luxury on the Embarcadero to just somewhat lux in Marin, is the only way to do that.
The form of Wincup may be off. It may be monstrous, even. But don’t knock it for its prices.