California’s housing scam enriches developers and the real estate industry

California now has the highest poverty rate in the nation when the cost of housing is taken into account. Since 2005, more than 2.5 million Californians have been forced to leave the state in search of an affordable home.

We are told a big lie, that the solution to our housing crisis is to get government out of the way and leave it to the free market to let affordable housing magically “trickle down” to lower-income households. The truth, though, is developers build to make a profit, not to provide a social need. Luxury housing doesn’t trickle down, at least not at a scale to bring down rents in a meaningful way.

If we want to meet our housing needs, we need solutions that tackle the problem directly, instead of continuing to reward the same actors who are getting rich off the crisis. If we want affordable housing, we need to build affordable housing, instead of cutting more than 70 percent of affordable housing funding since 2008, as California has done.

Source: San Francisco Examiner

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