By NATASHA COLLINS
Santa Clara County's scarcity of affordable housing is the result of a recovering economy and the unprecedented hiring spree taking place in the valley, according to a report by UC--Berkeley last week.
The report states that 11,000 new jobs were created between January 1995 and February 1996 in high-technology industry groups, and "the growth of jobs immediately translates into increased income and purchasing power."
The combination of job growth and higher incomes led to the increase of housing prices and the difficulty renters face to become homeowners.
With the demand rising for rental housing, so have the prices. According to the Fisher Center for Real Estate and Urban Economics at UC--Berkeley, the average median for rent increased in the county by 11 percent between January 1995 and March 1996.
Currently, according to Mary Ellen Chell of Cupertino Community Services, the group that oversees affordable housing in Cupertino, there is currently a 1 percent vacancy rate in Santa Clara County, which also adds to increased rental costs.
"There just aren't that many apartments available," Chell said. "It is an issue of supply and demand.
"There are more people coming into the community," she added, "and a majority of them can afford to pay higher prices."
Approximately 81.6 percent of county renters whose income is between $10,000 and $19,999 are paying more than 35 percent of their income toward rent, according to the Fisher report. In Cupertino, 93.1 percent of those renters are paying more than 35 percent of their income, in Sunnyvale, approximately 90.5 percent are paying more than 35 percent and approximately 81 percent are paying more in San Jose.
For those making over $35,000 a year, approximately 4.3 percent in the county are paying more than 35 percent of their income toward rent. In Cupertino, 5.9 percent, and in San Jose, approximately 4.9 percent are paying more than 35 percent of their income for rent. According to the report, statistics of those making over $35,000 were not applicable for Sunnyvale.
It is projected that there will be a shortage by the year 2010 of 754 residential units in Cupertino, 7,472 in Sunnyvale and 10,766 in San Jose, according to the report. With the increased shortage comes increased demand, Chell said.
"One of the biggest problems in the area is affordable housing," Chell added. "Unfortunately, the problem is only getting worse."
This article appeared in the Sunnyvale Sun, July 3, 1996.
©1996 Metro Publishing, Inc. All rights reserved.