Understanding the suburban home rush

CONTRA COSTA COUNTY, CA — Two years ago, I wrote about the unsustainable cost of housing in the East Bay. I expressed my angst about our children’s ability to afford to stay in the Bay Area after they graduate.

Not in my wildest dreams did I expect that just two years later, the median home price in Contra Costa County would soar more than 30 percent higher.

In just one year, from March 2020 to March 2021, the median home price has risen from $656,250 to $850,000 – an astonishing 29.5 percent.

And this is all happening during a pandemic.

While there are strong signs of hope that we’re headed to a world that more closely resembles that of pre-pandemic times, we’re still not out of the woods. Many friends, family and neighbors are out of work or have been forced to change jobs or even industries. So, what is driving the jet-fueled increase in home prices in our community? When will the madness end?

The answers to these questions aren’t straightforward. A number of factors are currently driving sales prices higher across the country: very low interest rates, pent-up demand and low supply. Still, the run-up in Contra Costa County is higher than the average across the country and in every other Bay Area county.

I think a large part of our increase has to do with a migration away from neighboring urban areas spurred by remote working. Now that some portion of the workforce is working from home, people are looking to move east to more “affordable” areas and get more land for their purchase.

It’s tough to say when home prices will cool off, but they will at some point. I believe we all need to be creative and work together to address the cost of housing in our community, the greater Bay Area and beyond.

An economist I am not, but I do understand the basic principle of supply and demand. Home sales prices and rental rates have been driven to a height that is unreachable for many, with the bottom 25 percent of income earners spending 67 percent of their income on housing, according to the Legislative Analyst’s Office.

As a planning commissioner, I’ll keep this in mind as proposed developments come before us. We cannot just say “yes” to every project. However, thoughtful proposals that are mindful of the community, won’t displace existing community members and will create more housing units should be ushered through the approval process without delay.

Jason Laub is Chief Operating Officer at RAD Urban and is a City of Concord Planning Commissioner. Email questions or comments to jlaub.concordplanning@gmail.com