The post-World War II suburbanization of America was driven by the housing needs of nuclear families, the nation’s leading demographic. In the 1950’s when much of housing was constructed post World War II, nuclear families represented around 43% of our households. Today, nuclear families only account for 20% of America’s households, while nearly 30% of homes are made up of single adults living alone. Some other growing household-trends include single parents, young adults living at
The Costa Hawkins Act (Costa-Hawkins) allows cities to implement local rent control laws, but within specific parameters: housing constructed after 1995, single-family homes, condominiums, and townhouses are exempt from local rent control regulations. Additionally, Costa-Hawkins allows rental property owners to establish their own rates at the time of a change in tenancy. A proposed ballot initiative entitled the “Affordable Housing Act for the California November 2018 Ballot” was submitted to the California Attorney General’s
If you’ve been reading our newsletter, you’ve undoubtedly heard about the rent control and just cause for eviction ballot initiative (Renter Protection Ballot Initiative) which has been circulating through the city. The Movement for Housing Justice has submitted 10,791 signatures to the City of Santa Cruz, well above the required number of signatures needed qualify the initiative for the November polls. The group is now awaiting the results of a 30 day signature validation process.
We've written about the downsides of rent-control in recent articles, and how the more sustainable solution to our present-day housing crisis would be an increase in the supply of affordable housing. However, creating affordable housing in the second-smallest (by land area) county in the state is not an easy task. One proposed solution in Santa Cruz City involves rezoning the main corridors to allow for higher-density housing in Santa Cruz city. Unfortunately, affordable housing
"A 10 percent increase in housing costs in a county is associated with a roughly 5 percent increase in housing costs in its neighboring counties." -California Legislative Analyst Office "Historically, Santa Cruz has provided housing base for major job centers located in Silicon Valley. This relationship has been one of the major drivers of housing demand, especially for single family dwellings in the above moderate household income category. Further, jobs in Santa Clara County
Should disagreements arise, the right to evict is an important component of property rights, giving real estate owners the ability to re-gain possession of their property in difficult situations. There is a new ballot initiative that is circulating throughout the city of Santa Cruz that poses to, in many situations, take away this right. This will increase the risk of renting in the City of Santa Cruz.
The private sewer service lateral (also known as a private lateral) is a pipe that takes an individual building’s wastewater to the public sewer main in the street. These private laterals are owned by the building owner and are essential for directing wastewater away from nearby structures such as other homes. Did you know that unincorporated-Santa Cruz County, Capitola City, and soon to be Santa Cruz City all have point-of-sale requirement under certain
The Cement Industry is One of the Primary Producers of Carbon Dioxide The cement industry is one of the primary producers of carbon dioxide, a potent greenhouse gas. The primary production of conventional concrete has a footprint of 456 to 689 pounds of carbon dioxide per 1.3 cubic yards One interesting alternative is hempcrete. JustBioFiber, a hemp-based modular block supplier, reports that its product sequesters 243 to 287 pounds of carbon dioxide per 1.3 cubic yards,
A reduction in incentives for homeownership results in strong demand in the rental market. This fact, and a new deduction on taxable income of pass-through companies suggests that landlords and other real estate investors stand to benefit from the new law.
On Tuesday, February 13th, the Santa Cruz City Council passed temporary rent freeze and a just cause for eviction ordinances for certain rental properties within the city limits (see exceptions below). This sudden action was in response to community-member complaints that, given the impending threat of a rent-control moratorium (City of Santa Cruz Rent Control and Tenant Protection Act) on the November ballot, landlords have an incentive to raise rents and evict tenants to guard
Out in the field with our buyers, we've been seeing multiple-offer situations on a number of homes, driving up the home price beyond what a reasonable comparable market analysis (CMA) would support. This is to be expected in a market like ours with tight inventory and high demand. Unfortunately, this also means that a number of buyers who rely on a mortgage for their home purchase may run into what we call, an appraisal deficiency
Assemblyman Richard Bloom (D-Santa Monica) proposed legislation on January 11th to repeal Costa-Hawkins, which would have allowed local governments to implement new rent control policies. The bill failed. But this is not the end of the rent-control battle. The California Local Rent Control Initiative, which would expand local government's authority to adopt rent control and repeal the Costa-Hawkin's Rental Housing Act may be on this year's November ballot. Locally, the Sentinel reports that
The following was announced by the Santa Cruz County Association of Realtors: On February 13, 2018 the City Council of Santa Cruz will be holding two public hearings that you should be aware of. At 2 pm there is a public hearing discussing the potential passing of a relocation assistance ordinance. If passed, this ordnance would make landlords liable to tenants for relocation assistance upon eviction or rent increase. Landlords would also be subject to
If we could see air pollution, would we be more proactive about combatting it? As more comprehensive data on air and possibly other types of pollution are captured and viewed by millions of people, what will be the implications for real estate decision making? In the future could property-pricing take air pollution measurements into account? Would this motivate entire neighborhoods to proactively combat air pollution? Read about advancements in air-pollution measuring and visualizing technology in this article.
We recently wrote about predictions for the 2018 housing market. This article is an extension of our previous post, and covers two important legislative battles that are gaining momentum. Rent Control: Rent control legislation proposals are popping up on a state and local level. According to this article, Assemblyman Richard Bloom (D-Santa Monica) will be proposing legislation on January 11th to repeal Costa-Hawkins, which would allow local governments to implement new rent control policies. Additionally,
The Tax Cuts and Jobs Act has been signed into law. There were some big "wins" in the final bill from the perspective of homebuyers, owners, and real estate investors. However, the bill removes important incentives for homeownership and may have an adverse impact in some markets. According to the National Association of Realtors, home prices will grow at a slower pace of 1-3% nationally. Unfortunately, some local markets in high cost, higher tax areas
At the beginning 2018, there are some important changes on the horizon for Santa Cruz Real Estate. The Tax Cuts and Jobs act, which is making its way through the House and Senate, will be a major determinant of 2018 housing market health. We've written about its potential impact on the California real estate market in a separate blog post, and will provide regular updates on this topic. Here, we summarize some other major factors
With the total headcount nearing the 90 million, millennials make up the largest living generation in the US. Ranging from early teens to mid-thirties, millennials are going to and have already begun to make up a significant proportion of potential homebuyers and renters. Knowing what this generation is looking for in a home is therefore key to home sellers and investors. What Millennials Like In A Home According to a late 2016 study
On Thursday, November 9th, Republicans in the Senate Finance Committee released an outline of their version of the "Tax Cuts and Jobs Act". Just one week earlier, the Republicans' congressional House Ways and Means Committee released the original version. Both pose a threat to homeownership as we know it today. Here is a short summary of how both may affect your real estate. Mortgage Interest Deduction The house bill will keep the mortgage
CLICK HERE FOR AN UPDATED VERSION OF THIS ARTICLE The passage of Prop 64 allows for the sale and taxation of commercial cannabis in the state of California. This development may have both negative and positive consequences for local Real Estate Markets. Commercial real estate owners in areas where cannabis cultivation and the sale of marijuana are legal may see a significant increase in real estate values and lease-rates. For example, in Denver, cannabis
On Thursday, November 9th, Republicans in the Senate Finance Committee released an outline of their version of the “Tax Cuts and Jobs Act”. Just one week earlier, the Republicans’ congressional House Ways and Means Committee released the original version. Both pose a threat to homeownership as we know it today. Here is a short summary of how both may affect your real estate. Mortgage Interest Deduction The house bill will keep the mortgage
Bitcoin is a decentralized currency that is used to send money instantly to anyone around the globe with negligible fees. It relies on blockchain technology, which provides a level of transparency and reliability needed to foster trust amongst bitcoin users. To learn more about the basics of bitcoin and blockchain, take a look at this video. Why is this relevant? Because bitcoin was just used to purchase a piece of US real estate. According
See a bigger version of this map here. As reported in 2007 by CalFire, a majority of Santa Cruz county is in a moderate to high fire zone (source). With wildfires rearing up in Northern California, including in our beloved Santa Cruz County, we know that many of our homeowner clients and future homeowner friends are asking “What can I do to protect my Santa Cruz Real Estate?”. This guide gives an extensive
Have you ever considered buying a manufactured or mobile home in Santa Cruz County? This blog post covers important topics on manufactured and mobile home ownership, including financing and the appreciation-potential of your asset. Would you like to see a list of mobile homes for sale in Santa Cruz County? Mobile Homes For Sale in Santa Cruz County: What Are Your Options? Find Out Today: We Do Not Share Your Information or Spam You. Questions? Please
Previously, you needed a 4,500 square foot lot, or larger, to build an Additional Dwelling Unit (ADU), also commonly known as a granny unit. Now, any legally built unit within the existing footprint of your home can be turned into an ADU under new state law. This applies to new projects and conversions, so long as the unit is within the pre-existing structure and is build legally (meaning it was permitted and build to code).
Click Here for Larger Map Image Whether you are a parent or future parent looking to buy a home in Santa Cruz or an investor searching for an investment property, its important to understand the quality of schools in the area you intend to buy. In this article, I will summarize important information about public and private education in Santa Cruz as well as resources that you can use to analyze individual schools.
Great news! Home buying just got a lot easier. A combination of two major changes in credit reporting and lending criteria could help tens of millions more individuals and families to qualify for a home loan. In 2012, the Federal Trade Commission determined that at least 20% of those surveyed had at least one error in their credit reports from one of the three major credit reporting agencies, Equifax, TransUnion and Experian, which had negatively affected their credit
Have you ever considered Vacation Rentals? Are you considering purchasing a second home, or currently own one? Do you have an extra room or portion of your house or duplex available? Santa Cruz County, with all of its many splendors ranging from gorgeous coastlines and legendary surf spots, to majestically scenic redwood drives and hikes, to iconic landmarks and family-friendly entertainment, provides a great opportunity to venture into the proposition of gaining extra income from
This just in: this Thursday, June 29th, at 7:00 p.m. the Santa Cruz City Planning Commission will consider new rules to govern short-term vacation rentals (included Airbnb and VRBO properties). The Planning Commission is taking a long, hard look at the affordable housing crisis in Santa Cruz City. Their decisions will have a direct impact on propertyowner’s ability to take part in the vacation rental program in the City. The City Planning Commission elected
As we talk to clients, we are hearing a similar question time and time again: When Will Prices Go Down? Measures of housing affordability in Santa Cruz suggest that rising income levels in neighboring communities are pushing up housing prices. Santa Cruz residents are finding it challenging to afford homes and younger generations are leaving in search for lower-priced housing. To maintain a healthy, diverse, and vibrant community it's vital that local economic growth keeps