Median home prices shooting past the $500,000 mark in Hollister
is just another reminder how quickly residents are being priced out
of their own hometown.
Median home prices shooting past the $500,000 mark in Hollister is just another reminder how quickly residents are being priced out of their own hometown.
It’s a simple economics of supply and demand fueling the home frenzy. With the moratorium on new construction, there just is not enough homes on the market to bring the price down to a more reasonable level and the influence of wealthy people trying to escape the hustle and bustle of city life are sending prices into the stratosphere.
Likewise, the spike in home prices also serves to drive families apart as children likely cannot afford homes in the same communities as their parents at these prices – to say nothing of the first-time homebuyers looking to make the most significant investment in their family’s lives. Imagine purchasing a “starter” home for $500,000.
A recent study by real-estate agents in California showed residents need to earn a six-figure salary to afford a $462,510, home, the median price of the average California home.
That’s startling news. It’s even more startling , and dismaying, when you learn that in Hollister the median home price is $529,000.
Considering the differences between our area and other more expensive places such as the Bay area, it’s completely ridiculous the market has outpaced earnings in a relatively short time.
We need leadership from local governments, not only in encouraging affordable housing development that residents who work here can afford, but also in attracting high-paying jobs through economic development and a strong development plan that can at least partially meet the incredible demand for housing in our area.
Obviously homeowners are happy with the increase in values, but putting homes out of the price range for people who work in San Benito County ultimately means more cars on our local highways as workers head to areas with robust economies seeking higher pay. The result is an even greater loss of local sales tax revenues from a workforce that commutes, and more than likely will spend, out of the county.
San Benito County has long feared becoming a San Jose closet community, but without good jobs and affordable homes – it’s a self-fulfilling prophecy.
