EPISODE 55 | 30 MINS
Solving the Affordable Housing Crisis
WITH JEFF BELLISARIO AND SHANNON PELOQUIN
What’s Driving the Affordability Problem
IN THIS EPISODE
[01:53] Mike shares how to register for the 2017 New Partners for Smart Growth Conference.
[02:04] Mike describes the Infinite Earth Lab program and how to sign up for the waiting list.
[03:00] Jeff Bellisario is introduced.
[03:21] Shannon Peloquin is introduced.
[03:51] Jeff reflects on what he finds so compelling about community development.
[06:06] Shannon shares how affordable housing and community development motivate her.
[07:49] Jeff and Shannon share how significant the affordability problem is in the San Francisco Bay Area.
[11:25] Jeff addresses the drivers of the affordability problem.
[13:13] Shannon gives her perspective of what’s driving the affordability problem.
[14:13] Jeff discusses the population of San Francisco and job growth in that area.
[16:26] Shannon shares her thoughts of what San Francisco needs to do to alleviate the housing affordability crisis.
[18:39] Jeff weighs in with his opinion of what San Francisco needs to do.
[19:52] Shannon discusses financial incentives to create commercial development.
[22:46] Jeff adds his thoughts to the discussion of financial incentives.
[23:30] Shannon describes what’s currently being done in the San Francisco Bay Area to create housing.
[24:24] Shannon mentions if there have been any housing-shortage studies done in the Bay Area.
[25:19] Jeff contributes to the topic of housing-shortage studies.
[26:20] Shannon identifies what needs to happen to make progress on the affordable housing issue.
[28:19] Jeff tells his thoughts on what needs to happen to make progress on the affordable housing issue.
Jeff Bellisario is a Research Manager for the Bay Area Council Economic Institute. He supports a wide range of Institute research through project management, research design, and analysis. His research interests lie at the intersection of community development and finance, and his past projects include analyses of Bay Area housing programs, public-private partnerships for infrastructure, and the economic impacts of transportation investments. Prior to joining the Bay Area Council Economic Institute, Jeff worked in Chicago in various portfolio management and investment analysis positions for John Hancock Financial Services and State Farm. Jeff holds an MPP degree from the UC-Berkeley Goldman School of Public Policy and a BS in Finance from the University of Illinois at Urbana-Champaign. He enjoys long runs through the hills of the East Bay and cheering on his favorite baseball team, the Chicago Cubs.
The Bay Area Council Economic Institute is a public-private partnership of business, labor, government and higher education, that works to support the economic vitality and competitiveness of California and the Bay Area. Its work builds on the twenty-year record of fact-based economic analysis and policy leadership of the Bay Area Economic Forum, which merged with the Bay Area Council in January 2008. The Bay Area Council and the Association of Bay Area Governments (ABAG) are the Institute’s leading institutional partners. The Economic Institute also supports and manages the Bay Area Science and Innovation Consortium (BASIC), a partnership of Northern California’s leading scientific research institutions and laboratories.Through its economic and policy research and partnerships, the Economic Institute addresses major issues impacting the competitiveness, economic development and quality of life of the region and the state, including infrastructure, globalization, science and technology, and governance. Its Board of Trustees, which oversees the development of its products and initiatives, is composed of leaders representing business, labor, government, higher education, science and technology, philanthropy and the community.
Shannon Peloquin is an Associate Partner in McKinsey’s San Francisco Office and a leader in their Infrastructure, Electric Power & Natural Gas (EPNG), and Aerospace & Defense practices. Prior to rejoining McKinsey in 2012, Shannon worked in the New York Metropolitan Transportation Authority’s (MTA) Office of the Chairman. She holds an M.B.A. from Stanford and a Bachelor of Science in Business in Marketing and Non-Profit Management, summa cum laude, from the University of Minnesota.
McKinsey & Company is a global management consulting firm that serves leading businesses, governments, non governmental organizations, and not-for-profits. They help their clients make lasting improvements to their performance and realize their most important goals. Over nearly a century, they’ve built a firm uniquely equipped to this task.
Take Away Quotes
“Just to throw a couple numbers out, average rents in San Francisco are over $3,500 a month; median home prices are over $1.3 million; and these are numbers that you don’t see anywhere else—maybe Manhattan. So in San Francisco, it’s an issue of there not being enough housing supply to meet all of the demand.”
“What does ‘affordable’ mean? We use ‘affordable,’ and when I talk about ‘affordable,’ it is households that are spending more than 30 percent of their pre-tax income on housing-related expenses…What is ‘affordable’ housing? That is kind of also based on kind of a standard, call it two bedroom, one bath for a family or a household of four.”
“When we look at San Francisco and we use that affordability threshold, what we found is that more than 70 percent of San Francisco households are cost-burdened, and when we say ‘cost-burdened,’ it’s they are spending more than 30 percent of their income on housing-related expenses.”
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