Housing is unaffordable for many and getting more so.

The Problem

The poverty rate is rising.

California’s poverty rate is 23% and rising.

New houses aren’t meeting the demand.

The state is only building about half of the demand needed for new demand alone.

Professionals are being priced out.

New teachers can no longer afford housing in 40% of California’s school district.

Market-rate development doesn’t work.

This creates new housing supply (a good thing), but only to the extent there is a high-end market. It is the least effective housing type for improving the housing market for everyone — and in reducing homelessness and displacement. The current market-rate housing business model is not capable of filling a majority of the housing supply gap.

Public Funding is only a small contribution.

Recent and proposed funding increases by California state and local governments will only increase affordable housing production by a few thousand units per year statewide at best. This model is important, but can’t scale to fill most of the housing gap or improve affordability for most lower-income households.

Opportunity Disparity

California’s housing shortage indiscriminately effects lower-income households, particularly renters and communities of color.

There is a high cost of too little housing.

Housing cost outpacing income has long-term negative effects on communities.

Increased

• Homelessness

• Displacement, especially from lower-income communities of color

• Commuting distance & environmental effects

• Wealth & opportunity disparity

Decreased

• Community diversity

• Local economic activity

• Home ownership

In broad strokes: McKinsey also estimated > $50 billion in lost annual economic activity in California due to high housing costs.

Now is the time to make an impact.

California’s housing crisis has rapidly changed communities; and added to poverty, homelessness, environmental impacts, and wealth disparity. Based on decades of under-production of new housing, California is projected to have a 3.5 Million unit shortage by 2025. California’s housing shortage has the greatest impact on lower-income households, particularly renters and communities of color.

Here’s where we bring a new approach.

We’re reinventing the model for development to address this current housing crisis.