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THE NEED FOR MORE AFFORDABLE HOUSING The well-documented housing affordability gap, which has been growing in the current housing market, makes it a challenge for Alameda County to ensure that economic diversity can be maintained. These high housing costs inhibit healthy, balanced economic growth regionally. Individuals and families are increasingly locked out of the local housing market and forced to take on increasingly long commutes to reach employment. In recent years, the impact of this affordability gap has expanded beyond low-and moderate-income households, which traditionally could benefit from some forms of governmental assistance. Strong housing production and the availability of housing affordable to a wider range of households has therefore become more important than ever. The Housing Bond will help to address the affordability gap, as well as the destabilization that occurs when market pressures in communities result in long-time residents being forced out of the County entirely in order to find housing they can afford. Affordability Gap—Rental Housing The difference between an affordable housing cost and market-rate housing cost is commonly called the housing "affordability gap." Alameda County's housing affordability gap exists for both rental and ownership housing. Low-income and middle-income households face a significant gap between what they can afford and the price of available housing. The illustration below highlights a three person household affordability gap at Extremely Low Income (30%of AM I), Very Low Income (50%of AMI) and Low Income (80%of AMI). TWO BEDROOM AFFORDABILITY ft Market Rate Rent ■80%AMI Affordable Rent •50%AMI Affordable Rent •30%AMI Affordable Rent ; 1 IIIII ,lllllll + 11 Two Bedroom 14.1111t!II IfHI Hi (3 Person HH) ' 1.+i $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Median rents increased 34%between 2011 and 2015 countywide. While the percentage increases vary by city across the County, the trend line for all jurisdictions in the County mirrors the countywide trend; rapidly increasing rents over the last several years, are shown below. 3