Skelton: Where's the housing help for the middle class?

"A former state legislative leader says fellow Democrats in Sacramento have long ignored the housing needs of middle-class Californians. And he has a plan to help them buy a new home. To their credit, Gov. Gavin Newsom and Democratic lawmakers have been chipping away at regulatory obstacles to home building in recent years, particularly in the just-concluded legislative session. But the building pace is still far behind what's sorely needed and what Newsom promised when he first ran for governor seven years ago."

"Supply still insufficient Supply doesn't come close to meeting demand and that pushes home prices much higher than millions of middle-class families can afford. One of the biggest raps on California is that housing costs have skyrocketed out of reach for many. That's a big reason why lots of middle-class folks have fled the so-called Golden State for less expensive regions."

"Much of the work by the governor and the Legislature in recent years has focused on homelessness and affordable housing, both of which require taxpayer subsidies and leave the middle class behind, says former Van Nuys lawmaker Bob Hertzberg, who was an Assembly speaker and Senate majority leader. Middle-class Californians just can't save up enough for a down payment. And the few government programs to assist middle-class buyers are complex, underfunded and are restricted to first-time homebuyers."

Democratic leaders in Sacramento have long neglected the housing needs of middle-class Californians, leaving many unable to save for down payments. Gov. Gavin Newsom and Democratic lawmakers have reduced regulatory obstacles to home building, but construction still lags far behind needed levels and past campaign promises. Housing supply remains far below demand, driving median single-family home prices to levels (July median $884,050) that require about $176,810 for a 20% down payment. Policy focus on homelessness and subsidized affordable housing has prioritized lower-income needs while middle-class assistance programs remain complex, underfunded, and largely restricted to first-time buyers, prompting political backlash.

Read at www.mercurynews.com