At the blog | December 2, 2024

The Bay Area’s housing crisis in national perspective

By Trenton Marlar

Housing affordability has reached crisis levels in the Bay Area and is emerging as a top concern across the country. Two recent surveys conducted by Embold Research – the 2024 Silicon Valley Poll in partnership with Joint Venture and Bay Area News Group, and another of voters across the U.S. – reveal the severity of the housing affordability crisis both locally and nationally. Soaring housing costs are putting financial pressure on residents, limiting their choices, and stifling upward mobility, especially for renters. In response, there is increasing demand for policymakers to act by expediting the development and approval of more affordable housing.

The Bay Area is among the regions hardest hit. Housing costs and other necessities are straining household finances, leaving many struggling to keep up with monthly rents and mortgage payments. In the Bay Area, a staggering 82% of residents consider housing costs a ‘very serious’ problem, leading to calls for more affordable housing and even driving some to consider leaving the region. This crisis is the region’s top issue, affecting those hoping to buy homes or stay in their communities, and residents strongly link high housing costs with homelessness.

Soaring housing costs have similarly alarmed voters nationwide, with nine in ten voters describing the cost of housing in their communities as a serious problem, with 46% describing it as “very serious.” This concern is particularly pronounced in the West, where 59% of voters describe the cost of housing in their community as a “very serious” problem.

Given the widespread concern over rising housing costs, voters are urging local leaders to take action by facilitating the development of more affordable housing. Nearly half of voters nationwide (47%) think that making housing more affordable should be a top priority for local leaders, ahead of other issues like crime prevention and improvements to infrastructure or K-12 education. In the Bay Area, the top three priorities for regional improvement also center on housing, with the leading choice being “building more affordable housing” (39%).

Voters in the Bay Area and across the nation share a deep concern about homelessness. Nationally, a majority view homelessness as a serious problem in their communities, with voters in the West particularly affected: 74% consider it a serious issue, significantly higher than in other regions. In the Bay Area, homelessness ranks alongside housing costs as a top concern, with 97% identifying it as a serious problem, including 79% who say it is “very serious.” Many voters see a strong link between housing affordability and homelessness: 61% nationally believe that “a lack of affordable housing in the community and the rising cost of living” are the primary causes of homelessness in their communities. This sentiment echoes concerns raised in the Bay Area in 2023, when the annual Silicon Valley Poll found that two-thirds of residents primarily attribute homelessness to a lack of affordable housing.

The burden of rising housing costs disproportionately affects renters. Nationally, 85% of renters say their income is falling behind the cost of housing, and nearly 80% are cost-burdened – spending 30% or more of their income on housing, with 41% spending more than half. Renters in the Bay Area are particularly squeezed, with three in four reporting that it has become harder to afford housing in the past year, including 49% who say it has become “much harder.”

Homeownership feels increasingly out of reach for renters. Nationally, three in four renters who hope to buy a home doubt they will ever be able to afford one. A similar level of pessimism is felt by renters in the Bay Area, where 70% of renters report that they would like to own a home in the region but do not believe they will ever be able to afford one.

While renters are the group most likely to feel squeezed by rising housing costs, homeowners are also feeling the strain. Nationwide, 62% of homeowners say their income is falling behind the cost of housing. Many also face challenges with their homeowner’s insurance: About half (52%) report their premiums have increased significantly, and one in five have avoided using their policies out of fear of cancellation or higher rates. These same issues are experienced by homeowners in the Bay Area, where they are more than twice as likely as homeowners nationwide (29% vs. 14%) to say they know of people who have had policies canceled.

The high cost of housing is also limiting people’s perceived choices and opportunities. Nearly half of nationwide voters (48%) say they would move if they had the resources to do so, but 92% of those same voters say that high housing costs prevent them from relocating. In the Bay Area, 47% of residents are considering moving away in the next few years, with housing costs cited as a primary reason. In other words, the high cost of housing may keep people from living where they want to, and in the Bay Area, may actively drive them away.

The housing shortage affects communities nationwide, with an especially severe impact in the Bay Area. Rising housing costs are causing significant financial stress, limiting choices, and hindering upward mobility, particularly for renters. It is no surprise that many voters are calling on local policymakers to make housing affordability a top priority.

About the Author

Trenton Marlar is an analyst at Embold Research, the nonpartisan unit of Change Research, a Bay Area polling firm. He also serves as an Affiliated Researcher at the Silicon Valley Institute for Regional Studies, where he leads survey research for Joint Venture’s annual Silicon Valley Poll.