Inequality and the Intersection between Land Use, Housing, and Transportation Policy

Let’s Get Moving!

Plenary Discussion

March 7, 2015

Wayne Chen, City of San Jose Housing Department

“Wherever there is great property there is great inequality. For one very rich man there must be at least five hundred poor, and the affluence of the few supposes the indigence of the many.”

- Adam Smith

“No society can surely be flourishing and happy of which by far the greater part of the numbers are poor and miserable.”

“It is not so much the size of the gap between the rich and poor that drives segregation as the ability of the super-wealthy to isolate and wall themselves off from the less well-to-do.”

- Richard Florida

“Google has the opportunity, the power, and the money to build an entire city and anchor a new vision of urbanity – but instead it has retreated into a predictable, perhaps even slightly sinister vision of a private world enclosed under glass.” - Edwin Heathcote

“This kind of growth is a thing to celebrate, surely. But there are perils associated with prosperity, and anybody trying to navigate their way around the region feels it…Perhaps most vexing of all, the growth is uneven. Though we’re proliferating high-wage and low-wage jobs, we’re steadily losing share in the middle. It’s as if the economy has lost its spine, and this has important implications for the kind of community we become.” - Russell Hancock, Joint Venture Silicon Valley

Occupations: Management Computer & Mathematical Architectural & Engineering Business & Financial Operations

Occupations: Office, Education, Training, & Library Office & Administrative Support Production Transportation & Material Moving Sales & Related Occupations Food Preparation & Serving-Related

% of Workforce: 31% Median Income: $84,600 to $144,000

% of Workforce: 46% Median Income: $19,700 to $55,700

Source: California Employment Development Department, May 2012

= 1,000 workers Divided Workforce- Silicon Valley

Steve, Shop Technician & Metalworker

Steve, Teacher, Lives in Affordable Housing

Robert, Artist & Former Machinist

Robert, Father, Lives in Affordable Housing

Monica, Food Concessions

Monica, Mother, Lives in Affordable Housing

Source: 2015 Silicon Valley Index

region’s population that does not make enough money to meet basic needs without public assistance

Highest Cost Rental Markets

Key Housing Issues

- Market builds housing at max prices

- Mismatch between labor and housing market

- Non-profits cannot compete for prime land

- Displacement and instability has increased

- Special needs and most vulnerable have no market based solutions

- Aging population

- Homelessness

New ways, new systems, new partnerships

Perceptions of Government

Market Orientation

- Market is “good,” government intervention is “bad”

- Supply is the solution

- Existing conditions are the “natural” order

- Does not address externalities, public realm

- False choice between equity v. efficiency

- Capital formation in response to sizeable returns

- Creating new public tools require significant process and tests

Regional Interdependence, Local Jurisdiction

1

2

3

4

200K 400K 600K 800K 1M

Palo Alto

Saratoga Los Altos

Morgan Hill Gilroy

Los Gatos Campbell

Sunnyvale Mountain View

Cupertino

Milpitas

San Jose

Data source: US Census Longitudinal Employer-Household Dynamics; CA Department of Finance

Jobs-Employed Resident Balance

Oakland San Francisco

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“Our residents expect their local governments to work together regionally. But [regional agencies] do not work unless the local officials from the region are willing to collaborate.” - Julie Pierce Councilmember, City of Clayton President, ABAG

Inequality and the Intersection between Land Use, Housing and Transportation Policy

Let’s Get Moving!

Plenary Discussion

March 7, 2015

Wayne Chen, City of San Jose Housing Department