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Hurdles to Breaking Into the Housing Market

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A Washington Post article on millennials saving up to buy a home by living rent-free with family or friends cited José Loya, assistant professor of urban planning at UCLA Luskin. Record-high rental prices, along with student loan debt, car payments, child-care costs and other expenses, have tapped the finances of many young adults. Breaking into the housing market is particularly difficult for Black and Latino homebuyers, who have applied for mortgages at declining rates since the start of the pandemic, said Loya, who researches housing inequality. Such groups are disproportionately affected by rising home prices because they tend to have lower incomes. “They’re getting squeezed out,” he said. Loya also reviewed a Futuro Investigates project that found that financial institutions in New Jersey rejected Latino mortgage applicants at higher rates than their white counterparts between 2018 and 2022. Latinos who did get mortgages, meanwhile, paid higher interest rates than white borrowers on comparable home loans.

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Lens on L.A.’s Skyrocketing Home Prices

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A Los Angeles Times article and KNX News report on L.A.’s soaring housing prices turned to UCLA Luskin’s Michael Lens for context. The newspaper reported that the median home price in Los Angeles had risen to just under $1 million, a 30% increase over the past five years. “Even if it is an arbitrary number, it’s an astounding one,” said Lens, chair of the Luskin School’s undergraduate program and a scholar of urban planning and public policy. Driven by scarcity and demand, the rising prices also impact the rental market, Lens said – but he added that state programs to increase the overall housing stock are falling short. His proposed solutions included “getting rid of single-family zoning and upzoning those neighborhoods,” removing “onerous parking requirements,” and scrapping rules on minimum setbacks and other burdensome mandates. Altogether, the state should fix “a lot of boring zoning things that together make the cost of building more housing more expensive,” Lens said.

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Listen to the KNX report

 

Lens on More Renters as Elected Officials in L.A.

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Michael Lens, associate professor of urban planning and public policy, was interviewed by NPR about a shifting trend in the demographics of elected officials in Los Angeles, where more are identifying as renters as opposed to homeowners. Residents of Los Angeles rank housing affordability as one of their biggest concerns, with 30% of renters spending over 50% of their income on rent. As more renters are elected to office, they may do a better job of representing the voices of fellow renters who have gone unheard for years. Lens explained that attempts to diversify politics in Los Angeles have in the past focused on race, gender and sexuality. The renter demographic has not been represented until recent elections. “It does, I think, matter to have representation along that axis,” Lens said. “It’s a pretty fundamental part of who we are and how we live in a city.”

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Lens on L.A.’s Urgent Need to Construct More Housing

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A Los Angeles Times op-ed written by Michael Lens, associate professor of urban planning and public policy, argues that stemming the flow of people into homelessness requires building more housing of all types, including market-rate. With homelessness as her top priority, L.A. Mayor Karen Bass has declared a state of emergency allowing her to expand the supply of temporary shelters and subsidized housing. Lens writes that these short-term solutions are not adequate to address the overarching problem that has driven up housing costs, and worsened homelessness, in Los Angeles: We do not build enough homes. Pointing to research showing that L.A. built fewer housing units in the 2010s than each of the two previous decades, Lens urged city officials to increase housing density in single-family and higher-income neighborhoods, among other recommendations. “If we don’t build more housing of all types, we are sustaining homelessness, not solving it,” he writes. 

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Shoup on Long Road to Parking Reform

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A Governing article on California’s move away from policies that promote car-oriented communities cited Donald Shoup, the distinguished research professor of urban planning who has spent his career studying the social, economic and environmental impact of parking policies. Shoup, author of the seminal 2005 book “The High Cost of Free Parking,” has long argued that rules mandating excess parking in new development projects add to the overlapping crises of housing affordability, urban sprawl and climate change. Influenced by Shoup’s work, cities from Buffalo to Minneapolis to San Diego have begun reducing or eliminating some of their minimum parking requirements. A new bill in California, which awaits the signature of Gov. Gavin Newsom, would be a substantial acceleration of that trend — and a remarkable capstone to Shoup’s academic career, the article noted. “It’s only been 50 years,” Shoup said. “It makes me feel grateful for longevity.”

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Taylor Reimagines California Dream With Fewer Cars

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Brian Taylor, director of the UCLA Institute of Transportation Studies, authored an opinion piece for the Southern California News Group about the urban landscape of California. “California’s reliance on low-density, sprawling development, with its wide streets and freeways and ubiquitous free parking, requires most Californians to travel by car for almost all of their trips, whether or not they own a car or want to drive that much,” wrote Taylor, a professor of urban planning and public policy. This emphasis on driving is expensive, takes up a lot of land and is harmful to the environment. Residents without access to personal cars, who are disproportionately Black and Latino, are increasingly left behind. Taylor proposed making metropolitan and transportation planning more urban-focused. Increasing housing density, eliminating parking mandates and improving public transit would help improve housing affordability and meet climate goals, he argued. “De-centering cars in central cities can make cities more sustainable, accessible and lively places,” Taylor wrote.

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Loukaitou-Sideris on Gentrification Near Transit

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Urban Planning Professor Anastasia Loukaitou-Sideris was featured in a Smart Cities Dive article about the growth of transit-oriented development in cities across the country. As transit ridership has declined and housing costs increase, cities have looked to mixed-use projects near bus and rail stations. This type of transit-oriented development aims to provide more housing and retail while making it easier for people to take trips on public transportation instead of by car. However, Loukaitou-Sideris pointed out that such developments sometimes replace affordable housing with luxury units where residents don’t use transit. According to her research, neighborhoods with transit stations are more likely to be gentrified than neighborhoods without. “What we are arguing is not to stop transit-oriented development because it can bring along the positives, but finding ways through policy to protect existing residents of these neighborhoods from displacement,” Loukaitou-Sideris said. She suggested anti-displacement measures such as rent control and eviction assistance for tenants.

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Luskin Housing Scholars Weigh In on California’s Crisis

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A UCLA Newsroom article on how to tackle California’s affordable housing crisis cited several scholars from UCLA Luskin. Associate Professor of Urban Planning and Public Policy Paavo Monkkonen sees the housing crisis as a combination of “unaffordability, instability and inability to house” and has urged the state to “use many levers to push cities to allow more new housing.” Los Angeles Initiative Director Zev Yaroslavsky has cautioned against changes that fundamentally undermine the character of neighborhoods. He suggested increasing zoning capacity but allowing the city to decide where it should take place. “You don’t need to destroy communities,” Yaroslavsky said. Associate Professor of Urban Planning and Public Policy Michael Lens highlighted the urgent need for more money for permanent supportive housing. The article was written by Jim Newton, editor of UCLA’s Blueprint magazine, who concluded that the competing arguments “reflect and shape California’s ongoing and urgent search for ways to adequately house every resident of the state.” 

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Vestal on Barriers to Addressing Homelessness

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Assistant Professor of Urban Planning Mark Vestal spoke to LAist about Section 8, a federal program that subsidizes housing for low-income individuals and families, the elderly and disabled. This program allows individuals experiencing homelessness to secure housing through vouchers. However, Vestal noted that about 50% of the people who get vouchers still can’t find housing. Landlords are incentivized to accept housing vouchers when they are in communities in decline and they are unable to get market-rate rent, but the incentive disappears when neighborhoods start to gentrify. “Landlords can discriminate against voucher holders and they have complete discretion,” Vestal explained. Furthermore, once an individual finds an apartment, it can still take a long time for the housing voucher to be approved. Vestal concluded that unhoused people have ideas about how they want to live with belongings and social space, and we should have a housing system that respects their needs and wants.

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Luskin Summit Draws Inspiration from Europe to Combat Homelessness

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A panel of experts from around the world joined the Feb. 23 Luskin Summit webinar “International Models of Social Housing: Lessons for California” to brainstorm strategies to address housing affordability and homelessness. California Assembly member Alex Lee welcomed attendees and kicked off the event by noting that nearly half of California residents qualify as rent-burdened as a result of the affordable housing crisis. Associate Professor of Urban Planning and Public Policy Paavo Monkkonen led the conversation about the successes of social housing and urban planning in Europe that could be adopted in California. Researcher Kath Scanlon from the London School of Economics noted that the goal of social housing is to solve housing affordability, but a successful social housing program will start by alleviating some of the pressure in the housing market. “For a variety of reasons, not everyone is going to be able to house themselves in the way we think they should be housed,” Scanlon said. “If California wants to step up, it will not be straightforward, but you have to start somewhere.” Helsinki’s housing program manager, Hanna Dhalmann, discussed Finland’s largest and most successful municipal housing company. “The first step is to give people real homes,” Dhalmann said. She recommended starting by investing in building affordable housing and turning housing shelters into apartments. Finally, former Deputy Mayor Jean-Louis Missika described how Paris was able to significantly expand housing production. Vivian Rescalvo, a member of the Board of Advisors of the Luskin School of Public Affairs, offered a closing statement for the event.

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