The Growing Gap and the Wrong Tip of the Iceberg

Important Points:

The real estate market during COVID was crazy and pointed mostly to one thing–many people in our country are not financially challenged. Many paid hundreds of thousands of dollars in cash — sometimes millions. And, many people wanted and could afford the same house.

The prosperity gap is real — while millions couldn’t pay rent to a property owner, an equal number could spend almost any amount for a home of their own.

One who can afford to purchase a home likely works hard, invested well, and was disciplined in financial stewardship or had a family legacy of prosperity.

Those below the threshold need more support and will continue to need it, so will their children.

There are many reasons to be concerned about the expanding gap. Those at the bottom become more fragile and dependent by the day

Those above the threshold may have to work harder, pay more taxes, and wait longer to retire.

People who work hard find their rewards in purchasing power. Those who don’t, who can’t, or who aren’t working harder find few rewards. Generationally housed families will fare better in the realm of mental health, partially because the survival basics are in place. However, it doesn’t mean the pressures to maintain them are not real and produce unwelcome stress.

The prosperity gap is real —
while millions couldn’t pay rent,
an equal number could spend
almost any amount for a home
of their own.

Considering those in the lowest quadrant, the lack of stable housing threatens ever step up the ladder. Kids feel it. School work becomes secondary, health issues develop, manifesting itself in negative behaviors in the workplace, classrooms and neighborhoods.

This past week, the Governor put a hold on releasing any funding for shelter operations until there is evidence of success people are being placed into housing. This is the wrong tip of the iceberg. The Santa Paula shelter has ten family units qualified and ready to move from the shelter into housing — but there is no housing for them. Meanwhile, the strain on staff and case managers to motivate and encourage, while providing hope, is huge.

Without housing, the people
will perish, and so will
those who suffer with them.

Funding must be tiered, starting with low-barrier shelters for adults and families, then transitional housing, and on to permanent supportive housing. Each level requires trained staff, buildings, beds, food, and mental health services. Not all homeless people are candidates for independent living — just as not all desire or are eligible or suited to shelter life.

It’s complicated but the governor has to support people in the trenches for there is the hardest work of all. Without housing, the people will perish and so will those who suffer with them.

Kay Wilson-Bolton is an associate broker with Century 21 Real Estate Alliance and can be reached at 805.340.5025 and kay@realestatemagic.com