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Time,
money and housing
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Thomas Sowell
Published on Monday, September 12, 2005, in the Tracy Press.
STANFORD — They say time is money, but a lot depends on
whose time and whose money. For example, the San Mateo County
Planning Commission has spent five years deciding what can and
cannot be done with the site of an old racetrack that is no longer
economically viable.
That is more time than it took to build the Empire State Building,
the Golden Gate Bridge or the Manhattan Project that produced
the first atomic bomb.
None of this delay has cost the members of the planning commission
a dime. That is why the delay is still continuing. But whatever
is finally done with the racetrack site will be vastly more expensive
because five years of delay are not cheap.
Such delays are not uncommon in the more politically correct
parts of California. Permission to build an apartment complex
near San Francisco has taken even longer. Whoever ends up living
in those apartments will have to pay far higher rents as a result.
A recent study indicates that one-fifth of new homebuyers in
California pay at least half of their income for housing. So
do nearly one-fourth of California renters. When it costs half
of what you make just to put a roof over your head, that is a
big restriction on what else you can afford to do.
How did this situation come about and why does it continue?
Part of the reason is that it is newcomers who have to pay outrageous
prices for houses, while it is existing homeowners who vote for
laws and policies that drive up housing costs by obstructing
the building of new homes.
Those who already own their homes are not hurt by soaring housing
prices. In fact, they benefit when the value of their homes becomes
several times what they originally paid for them.
Given this situation and these incentives,
it is easy to understand why such things as planning commissions, “open space” laws
and “historical preservation” policies proliferate.
These roadblocks to building are essentially idealistic-sounding
ways of being completely selfish.
Despite much liberal rhetoric about compassion for the poor,
it is precisely in such overwhelmingly liberal enclaves as those
in California where high housing costs resulting from restrictive
laws have imposed the heaviest burden on lower-income people.
Nearly half of those California renters who earn $30,000 a year
or less pay half or more of their incomes for rent. Among those
in this income bracket who have bought a home within the past
two years, 72 percent are spending at least half of their income
on monthly mortgage payments.
The human consequences of artificially
expensive housing extend even to some of the affluent people
living in communities with sky-high housing costs. For example,
elderly people in such communities — especially
those who are ailing and homebound — are often isolated
from their children.
Young adults who have not yet reached
their peak-earning years usually cannot afford to live in such
communities near their parents, unless they live in their parents’ homes.
People like teachers and policemen, who every community must
have, can seldom afford to live where they work when housing
costs are out of sight, and so must commute from a long way away,
sometimes spending three or four hours a day driving to and from
work on crowded highways.
All sorts of lofty talk about “open space” or “saving
the green foothills” is used to disguise the plain fact
that those who already have theirs want to keep other people
out, especially other people not as upscale as themselves.
Ugly as such selfishness may be, it is no worse than the zealotry
of the nature cultists who join with them to make life miserable
for thousands of other people in order to give themselves a cheap
sense of importance that some confuse with idealism.
The irony in much of California is that
the “green foothills” that
environmental zealots wax poetic about are in fact brown half
the year. The absence of rainfall during the California summer
means that these hills are covered with ugly withered grass.
The only places where there is green grass
during these dry months are places artificially watered by
people — which
is to say, mostly places where there is housing.
• Thomas Sowell is a senior fellow
at the Hoover Institution at Stanford University and is a Creators
Syndicate columnist.
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