Sam Donaldson, Chip Franklin discussed on Armstrong and Getty


Coverage I just a programming note chip Franklin at three forty this afternoon will be talking super Tuesday with Sam Donaldson so stay tuned for that but in studio with me right now is a California state senator Scott Wiener and we were talking about housing and we will be transitioning into you know homeless programs for the homeless and getting them the right kind of assistance and care you want to put your headphones on real quick we do have a call from Steve in San Jose and he's asking so Steve you're curious about the impact of investment companies on housing yes yes yes good morning good morning center you know how they do I have a question and then and then the suggestions to the answer how big of an impact on these companies that come in and gobble up new housing for investments or and or how did Hoagland with the moms for housing where they were fighting against it was taken over that building yeah how big of an impact is that I'm this might be as a thank you for the question I'm here the first part but I think I know what you're asking about and that is the concern that that investment companies are buying up homes in keeping them be done successfully for a long period of time and then it's and then people are homeless living on the street outside an empty house right there and there's also a narrative the some of the new housing that's being built is somehow not being occupied and also it's on the but we know from the data because vacancy rates are tracked very closely the national vacancy rates of homes and apartments is on seven percent in San Francisco it's four percent interesting in LA it's three and a half percent so our vacancy rates in in our special inner cities are quite low and you don't want a vacancy rate of zero or one percent that's that's considered unhealthy because then there's no available housing so three four percent vacancy rate is below average and is considered healthy with that said in San Francisco for example a vacancy rate of four percent means about fourteen thousand vacant homes now of bacon doesn't necessarily mean long term vacant right new homes and new apartments or condos may not be occupied immediately it might take six months or nine months to get it sold or rented or or whatever and then you may have our homes are apartments a turnover and maybe there is you know take a few months to get around to it or maybe it's getting renovated on there so there are many reasons why home will be vacant do you support a vacant seat back and there are there are clearly there is a group there are some investors that will purchase homes and keep them and keep them vacant I don't think it is a rampant problem it does exist and we don't want that to happen and so Vancouver imposed a vacancy tax because they have a much they actually do have a vacancy problem Vancouver there are it's bad mixed results it has not that is not meaningful it is improve the situation but it hasn't dramatically improve that so I'm open to anything that solves that particular very limited problem but it has to be a factor but I think it's very important to understand that we do not have a vacancy problem in the bay area we have a low vacancy rate by national standards building problem we don't have enough homes and I do think there are there are people who don't want to see new development happen who latch onto this I think inaccurate narrative that that no one's occupying the new health bill that is not true well it is also the cost of living in some of that news housing it starts so high that it's out of the reach of a lot of people well and and that there are two things happening when you have a multi million home shortage housing is going to be really expensive and and so let's say you have you know a three and a half million home shortage and you build the first fifty thousand to fill in the hole they're gonna be really expensive you still have a huge shortage and on top of it I think it's important for people to recognize that.

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