In the coastal community of Santa Barbara, the median home cost - more than $1.2 million - has forced local police, fire fighters and nurses further and further inland for affordable middle class housing. What happens when first-responders live outside the community they are protecting?
Correspondent Stephanie O’Neill Noe reports.
- Housing Affordability Index, California Association of Realtors
Listen to the commentary
May 19th, 2006 at 10:01 pm
PUUULESE… I’m tired of “Fireman Worship.” Communities don’t need just firemen, police, and teachers. All the people that work are needed, from hotel clerks, to restaurant chefs, to corporate employees.
Like most in my place, I’m busting my butt trying to make a living in corporate America. Unlike police and firemen, those in corporate America don’t make overtime pay, don’t get a pension, and we have to work business hours. Nobody is standing up for me trying to find me a cheap ticket to live in Santa Barbara. Instead, I’ll be asked to make up the difference for low cost housing subsidies, which will simply artificially prop up the price of houses all around the area.
I’m priced out of the area too. I’m in my early 40’s, I have a family, and I rent. Naturally I dream of owning a house, but to do that I’d have to move to somewhere far away and commute in to work business hours. Renting is a choice I have to make, but I can’t go on T.V. to complain about my plight and ask the community to buy me a house in one of the most expensive cities in the world. Instead, I have to grin and bear it.
Firemen literally have to win a lottery to get their jobs, and they often have schedules that give them so much extra time on their hands that they can work side jobs or start side businesses. I say it is not the firemen that are the local community heroes, but the mass of corporate workers that turn the economic wheels of the city, on the backs of no-one.
May 21st, 2006 at 12:51 pm
Interesting but sad commentary…I live in Westchester,CA., adjacent to LAX…I own my home, only because I purchased my first home in 1972 and was able to sell one to buy another as prices escalated…but what about my children? They are 32 and 29 and were born and raised here on the westside but will NEVER be able to own property here until I die and they get mine…how sad is that? My oldest son is a teacher in Pacific Palisades…he’ll never be able to afford housing where he works, or even near it. My youngest son is in the woodworking business…it’s a wonderful business and he’s very talented but it will never allow him to afford a home here either…he lives with me and my older son lives with a partner in a home owned by his partner’s mother…. both my sons are thinking about relocating away from here…too bad, Southern California will lose two good citizens!
May 21st, 2006 at 2:29 pm
We moved to San Clemente recently & absolutely love it! Last week some gal on your show, impersonating a lemon//lime popsicle disparaged our communnity. come down for a visit; you’ll see it’s a hell of a lot better than Cincinnatti!
Love, Donn
August 4th, 2006 at 8:54 pm
I agree with the story. But the workers in Santa Barbara are not the only ones being priced out. I thought when I reached the age of 30 I would be in my first home. Even in the lower income communities the average middle class worker can not afford a home. We are in a position to go to college to afford what we want instead of going to college to be what we want to be. I left teaching for a city job because I make 40% more. I would love to teach again but not if it means to have to live in a dangerous neighborhood. At the present I would have to move to Antelope Valley or further to afford a home although I work for the City of Los Angeles.
August 4th, 2006 at 9:47 pm
My wife and I lived two hours north of SB on the central coast. In two short years we watched as housing prices appreciated nearly 100 percent. Now, homes in areas like San Luis Obispo county easily carry a 500,000 price tag.
For reasons including economic hardship (I must also mention that my wife and I have BA’s, as well as teaching credentials), we made a move to the central valley of California. Investors have left no stone unturned in this area as well, with most “starter” homes ranging in the low 300’s (who starts with that kinda mortgage?)
This is ridiculous. Young marrieds have two choices - put your kids in day-care, or plan on renting for the rest of your life.
California’s “free-market” enourages a life-style that isn’t tolerable.
I would fully support any efforts that would complicate investor’s in large cities ruining the State’s real estate market.
I’ll tune in when I hear that things are getting better. Meanwhile, I’ll be in Kansas
August 5th, 2006 at 12:07 am
I lived in Santa Barbara; and actually owned 3 homes there; at one time. I moved, because I found the Mayor, City Officials, and police force all had become like Nazi’s. There is so much anger among the police force, fireman, and average worker, that they couldn’t afford to live there; that Santa Barbara became like livong in hell rather than heaven. I sold my homes and left; as that city is already a disaster to live there.
January 12th, 2007 at 10:17 pm
I’m sick to death of hearing this same story about government employees … the most pampered people in America. It’s small business owners and workers that keep this state running. We have no pensions, no free health care and will work well in to our 60’s , most of my generation will never retire as our parents did.
Most government employees retire in their early 50’s with free health care and an index linked pension for life! I’d need a million dollars in the bank to guarantee this level of retirement.
The State has been hiding the true cost … it’s now running into the trillions … do a Google search and educate yourselves on this staggering problem.
There was an article in the paper here in Half Moon Bay California about firemens over time pay… many were banking over $200,000 per year !! The chief is making $135k PLUS $7,500 per month becuse of all the overtime he puts in. Ask any American worker how many hours they work, how many people are working two jobs? How many small business owners work 7 days a week>?
Please research more before making a show like this.
January 12th, 2007 at 10:20 pm
Both my husband and I are teachers in Los Angeles. We teach in the “inner city” and love our jobs. My family lives close by and we are looking to start a family soon. Unfortuately we are priced out of the market for not only a house but a condo as well. In fact, half of our teaching staff, young and enthusiastic people wiling to work in a school where most people would not want to go, are talking of leaving the state in order to buy a house. As Steve mentioned, most of us work others jobs as well, despite the 80+ hour weeks and mandatory “continuing education” classes we must take in order to stay credentialed.
My husband and I finally made the decision to buy a house this past summer in Oregon. We’ll move this summer when the school year ends. I often wonder how anyone in Southern California stays a teacher, although I know that the prices affect people of all professions.
January 12th, 2007 at 10:21 pm
In 2004, at the age of 29, I realized two things: 1) I would never be able to afford to buy a home in SoCal (I refuse to live in BFE) and 2) even if I could afford to buy a house here someday, why would I want to with all of our problems. I began researching other US cities with two requirements: 1) my future home would not require a car in order to get around most of the time and 2) it would still have a stock of reasonably priced housing. I’m considering a $200K 2 bedroom condo in a decent part of the city to be reasonable. And just as I thought I found a few prospects worth further investigation, Bush won reeclection. Well, long story short, this prompted me to consider Canada with its more enlightened views toward things like health care and social policy. It turns out that not only is Canada just about everything I’m looking for in a country, but Toronto is almost everything I want in a city. It offers no shortage of cultural activities, public transit (No car required!) or jobs. And the $200K condo is alive and well there! Sure, winters will be tough but real weather will be a nice change. Getting my permanent visa did not take too long or too much money. I’m moving in June, just as soon as my apartment lease is up! I invite people, especially left leaning younger people looking to settle down, to consider emmigration to Canada. California is all style and no substance. Besides, the next big earthquake is going to tear down all of those overpriced homes anyway!
January 12th, 2007 at 10:46 pm
I have known for a long time there is no way to afford a house for anyone who isn’t wealthy. There is no middle class. There is only the affluent and the poor. There is no in betweeen. The only people who can afford a house in California are the rich. The rest of us are forced to live in appartments where there is no rent control or share houses with others.
January 13th, 2007 at 1:14 am
I live in Orange County, with the housing prices here you get what you pay for. You can find cheaper living accomodations in dangerous neighborhoods, or trade room to live and money to live on for safety and good schools. While the government reqires low income houseing to be made available in what were nice areas here, the middleclass cannot thrive in anyway. To better our families future, my husband will contract a job out of the country for 1-2 years so we can give our daughter what we had growing up here. A safe, healthy and enjoyable life without blizzards, floods and hurricanes. Sure we can move to Austin or Spokane, but I am a 4th generation Southern Californian- and pardon me if I think I deserve a chance to stay where my family settled long before the millionaires destroyed coastal lands and natural habitat.
The sacrifices made by the middleclass are unfair and no longer a comfortable choice. There are many commments on here about how Firemen, Police and others that serve communities don’t deserve recognition in the struggle to live near where they work, but hotel clerks and bus drivers arn’t saving lives- so be a little more greatful to those who risk their very lives for your million dollar homes and expensive toys that cost more than their yearly salary. I can guarantee the “elitists” are not from here, and don’t understand the lifestyle that once was the coastal Californian way. If they did they wouldn’t build on the coast and they wouldn’t send a message of “we don’t want the little nature we didn’t build mansions on to be used to house those that make our life here possible and ensure us the quality of life we derserve because we are rich or accomplished or whatever.” It is a shame that Califoria has been lost- in spirit and lost to those who are its living history.
January 14th, 2007 at 3:19 pm
I saw the show today, and see it must have been a repeat. I surprised there have been so few comments posted here - this is a hot subject!
I’m a Realtor in Southern CA. When I first selling homes, a person could come to my area and find a 3BR/ 2Ba home for around $125k-$175k. The market frenzy we’ve seen has had so many negative impacts in my area and has caused the driving up of prices that are not in line with the local economy.
After much debating with my friends and colleagues, I truly believe the state or federal government should do more to incent or promote affordable housing. And I’m talking about housing the AVERAGE worker can afford, NOT so that people who are already above the poverty line can live by the beach!
PS: Contrary to the piece on this site called Realtor Rules, Realtors are required to complete continuing education, as well as act in good faith in all transactions. Our job is a work in progress and surely it takes so much more than some quantified training hours. Our training does not stop when we get our licenses, there we’re just getting started! How many people do you know who got thier license but don’t practice anymore? You don’t “arrive” upon the issuance of a salesperson license from the department of real estate!
January 17th, 2007 at 9:06 pm
Ms. Noe in her segment asked a question to the realtor about what we could do in a “free-market” to correct this situation. I think Ms. Noe needs to do some more research.
The real estate market in California and the California economy as a whole is not a “free-market” economy at all. Consider the following: rent control, public subsidies, section 8s, requirements that housing developers need to poney up extra thousands of dollars in below market rent housing, and land trusts/open spaces that take tens of thousands of acres out of any potential development are all factors in a socialized economy.
I came to Ms. Noe’s segment late - did she discuss the open space land trust issue? In Santa Clara county and San Mateo county - thousands of acres cannot be used for housing. Additionally, did Ms. Noe discuss the outrageous state income tax that prevents people from saving up for a down-payment, as well as killing the middle class here, and driving businesses and jobs out of state??
Finally, people who are concerned about the death of the middle class in California need only to look at Sacramento and its socialist policies to see its cause.
Regards -
January 17th, 2007 at 11:55 pm
As mentioned, UCSB’s housing is for Faculty, not staff. This isn’t a problem that can be solved by building some housing for some 1st responders, and teachers, and University faculty. A community is the sum of its parts. If houses go for 1.2M, rent starts at 1K for a 1BR. When the middle class can’t buy houses, other people can’t pay the rent. Sure, if you REALLY have to live here, you can make it work by sharing housing etc. But by contrast other communities look a lot more attractive.
I don’t feel I have a god-given right to live in SB. My family is moving out of the area soon, giving up the mountain-meets-the-ocean paradise, for some place where we can afford our own home.
I feel bad for the people who grew up here, who are being priced out by speculators trying to make a quick buck. But that’s The American Way. Those who have money make more, and those who don’t, don’t.
Good bye SB. It was nice while it lasted, and I’ll come back and visit, but my family’s paradise includes our own home.
February 26th, 2007 at 4:21 pm
I’m surprised by the passionate ridicule by citizens of those who place themselves in harm’s way for the benefit of the community. First responders are the core of very important services provided to any community. The key word in this puzzle is “response.”
There are many issues that play into this discussion. The Santa Barbara south coast area is nice, yes. But it carries some unique attributes that must be planned for. To not do so would be reckless to say the least.
Have people already forgotten La Conchita and the Winters Storms of 2005? We were land-locked for several days. It was impossible for many first-responders and critical workforce personnel to respond immediately. Thank God that it wasn’t worse, as we were sorely pressed to provide the services that the community needs and expects.
And to the poster who made the comment about government employees needs to check their facts. Yes, it’s true, most government workers exchange lower than median income salaries for job security and a pension. Many, if not most, of those employees could never hope to buy a home here, even in a low-income housing program. Be assured that the entitlements are not what they used to be, especially in this climate of rising healthcare costs.
It is crucial to the safety and security of the community that ways are found to get our first-responders closer to where they work. You may not agree with that statement, but it doesn’t make it a false one. For those naysayers out there I only have one question … who do you call when disaster strikes?
March 6th, 2007 at 9:42 am
I say stop trying to make housing affordable and start offering relocation assistance for those hurt by the increases. Once enough of the non-rich people start taking advantage of that and move to more reasonable parts of the state (or country), the market will find that there’s fewer people there to make coffee or service cars. Demand for housing will drop, because people are leaving, and salaries for these traditionally lower-income positions will rise, because there will need to be incentive to keep people in these positions there. The end result will be affordable housing.
April 15th, 2007 at 1:56 pm
Oh how memories are so pathetically short…if one looks through achieves of print newspapers the exact same stories can be seen, lack of affordability, certain demographic classes priced out, fear of loss driving people to attempt the impossible by buying homes they cannot afford via toxic mortgages and then losing them after complete ruination. Incredibly this is followed several years later by total disinterest in real estate once it has corrected to normal valuations vs. income at the exact moment people should be buying! Then several years later as real estate slowly recovers the process starts over again and this asset class gets overheated again to unsustainable levels! Wash, rinse, repeat!
Don’t believe it??? Try these headlines from the past. You could just change the date and insert them in the current bubble/bust we are in the midst of right now.
“The great Los Angeles housing boom is over. The real estate price explosion in southern California, which sparked a national boom still continuing elsewhere, has stopped. The bubble that everyone said could never burst has burst.” The New York Times August 17, 1981
Unlike Stocks, Home Prices Rarely Collapse
JAMES FLANIGAN; Los Angeles Times (pre-1997 Fulltext); Aug 28, 1988; pg. 1
Stock of Unsold Homes Drops Dramatically
DAVID M. KINCHEN; Los Angeles Times (pre-1997 Fulltext); Apr 2, 1989; pg. 9
How First-Time Buyers Can Get Their Piece of the Dream
Myers, David W; Los Angeles Times; May 21, 1989; pg. VIII1
Survey Cites Four California Banks With Possibly Risky Realty Loans
JAMES BATES; Los Angeles Times (pre-1997 Fulltext); Dec 30, 1989; pg. 1
The Number of Homes for Sale Sets a Record Real Estate: San Diego becomes buyer’s market, with 4,000 existing homes listed in January.
GREG JOHNSON; Los Angeles Times (pre-1997 Fulltext); Feb 13, 1990; pg. 2.A
Climbing Mortgage Rates Hurt Existing Home Sales
Samuels, Alisa; Los Angeles Times; Apr 26, 1990; Vol. 109, Iss. 144; D; pg. 3
Home Sales in July at Slowest Pace in 4 1/2 Years
Furlong, Tom; Los Angeles Times; Aug 28, 1990; Vol. 109, Iss. 268; D; pg. 2
Housing Slump in California Seen Worsening
TOM FURLONG; Los Angeles Times (pre-1997 Fulltext); Nov 21, 1990; pg. 1
Couple Put Up a Big Sign of the Real Estate Slump Housing: They write `For Sale’ in huge letters on their lawn, hoping to attract attention from passengers in planes and jets on flight path to LAX.
DICK WAGNER; Los Angeles Times (pre-1997; Apr 29, 1993; pg. 8
Excesses need to be worked out in their own time as Govt. programs do not work. Bailouts, subsidies, credits, and other programs are a drop in the bucket, only prolonging the shakeouts and corrections that are inevitable in asset class investing. Human behavior drives cycles, in silly things like Beanie Babies all the way to live changing decisions like real estate. Mommy and Daddy are not around to protect you any more.
April 19th, 2007 at 1:37 pm
This is much more than a coastal problem, but rather a state problem. I currently live in Pleasanton, CA where the prices are just as bad and first responders live as far as 100 miles away from where they work.
Having grown up in Santa Barbara County I understand the plight in that community. But unless we see the problem on a much more wide scale (involving not only coastal cities and beyond first responders) and as a plight that will have deep seated consequences in the time of a disaster, we will never be able to get to work on solutions that matter.
April 23rd, 2007 at 9:08 am
My wife and I are two doctors living in Southern California. We are both subspecialists, and live in Hermosa Beach. We are priced out of the market here, after sacrificing the last 15 years of our lives in order to help people. We wonder everyday, why are we faced with this choice: a house or children? Young adults, it is time to redefine our lives, to one that does not include a house. This housing market is nothing more than a parking place for the exceedingly wealthy’s money, and a playground for the rich. Apparently, now even young physicians in Los Angeles are no longer part of “the rich”!
April 30th, 2007 at 8:59 pm
where i live its very inexpensive and a beautiful area about 4hrs n. of la and 2hrs e. of the ocean. im selling my 5bd home right now for just 350k