Home ownership in Hayward is increasingly challenging due to high costs, limited supply, and rising expenses, leaving many residents struggling to maintain their homes and achieve the American dream.
Home ownership has long been regarded as a cornerstone of the American dream, yet in cities like Hayward, California, this aspiration is becoming increasingly difficult to achieve. High mortgage rates, escalating homeowners association (HOA) fees, rising utility costs, and stagnant incomes are severely hampering residents’ ability to purchase and retain homes in the Bay Area, often referred to as the “Heart of the Bay.”
On October 14, American Community Media convened a briefing that brought together housing advocacy groups, local government officials, and industry experts to address the myriad challenges faced by small property owners in securing and maintaining their properties.
California State Senator Aisha Wahab, a Hayward resident, highlighted the stark disparity between housing demand and supply. “In 2023, we developed a little over 100,000 units in California. The need is close to 2.5 million units,” she stated. This significant shortfall places Bay Area residents at a disadvantage, particularly those aspiring to become homeowners in a region where the cost of living is notably high.
Property owners are experiencing varying degrees of difficulty in this challenging market. Larger corporate landlords and leasing companies wield considerable bargaining power, which often results in smaller “mom-and-pop” property owners being priced out. These smaller owners, who typically manage fewer than four properties, find it increasingly challenging to compete with the lower rents offered by corporate entities, leading many to relinquish their properties.
Derek Barnes, CEO of the East Bay Rental Housing Association (EBRHA), a nonprofit organization that advocates for rental property owners and managers in the East Bay, echoed Wahab’s concerns. “The sentiment from about 34% of our smaller owner-operators — who own four or fewer units — was that they are looking to leave the business over the next 24 months,” he noted.
Compounding the issue is the lack of a clear classification system that distinguishes smaller property owners from larger ones. This absence of transparency makes it difficult for lawmakers to develop policies aimed at protecting smaller property owners from the predatory practices of corporate landlords. “Every single effort [to legislate for this issue] at the state level has been killed by the special interest groups,” Wahab asserted. “I want to be very clear about transparency and accountability: there is none!”
The hidden costs associated with home ownership further complicate the situation. Mizgon Zahir, a second-generation Afghan-American who grew up in Hayward, shared her personal experience. After living in a rented home as a single mother of two, she and her partner combined their resources to purchase a home. However, she continues to feel anxious about their financial stability. “We’re constantly under pressure if, for example, my health fails, or he loses his job, or something happens to my job, what will happen to the family dynamic, and will we have to go back to renting?” Zahir expressed. “It won’t just be myself and my partner who will be displaced, but it will be the children who also rely on us because they can’t afford to rent either.”
Many homeowners in Hayward share Zahir’s fears, as they face the threat of losing the homes they have worked hard to acquire. Gina Di Giusto, a Senior Attorney at Housing and Economic Rights Advocates (HERA), a nonprofit organization that provides legal support to vulnerable homeowners, pointed out that many prospective homeowners are unaware of the full scope of costs associated with home ownership. Beyond down payments and mortgage payments, homeowners must also navigate unpredictable increases in HOA dues and sudden hikes in property taxes due to home improvements or local measures.
“Utilities are expensive, homeowners’ insurance is increasingly unaffordable… and then you have all sorts of unpredictable things that happen day-to-day,” Di Giusto warned.
Di Giusto believes that the current struggles surrounding home ownership and the rising cost of living will have lasting implications for younger generations. “I think that a lot of young people feel like their incomes will never be able to support being able to be a homeowner themselves,” she said. Many young individuals are still living at home, witnessing the financial burdens their parents and grandparents face in order to maintain their family homes, which may dampen their desire to pursue home ownership.
Nancy Rivera, co-founder and Executive Director of A1 Community Housing Services (CHS), an organization dedicated to providing counseling services to prospective homebuyers and homeowners, noted that the high costs of home ownership have led to a growing trend of multiple families pooling their resources to qualify for mortgages. She observed that many Hayward residents are relocating to more affordable cities like Modesto and Stockton, as Hayward is increasingly viewed as an unaffordable option.
Rivera encourages prospective homebuyers to seek housing counseling through organizations like A1 CHS or HERA to make informed decisions before investing in the housing market. A1 CHS, for instance, offers an intensive eight-hour workshop on the home purchasing process and strategies for preserving ownership. “You want to take the course today, because you want to understand if home ownership is right for you, not when you’re closing [on the deal],” she advised. “It’s always a first step to really understand whether home ownership is right for someone, because home ownership is not for everyone.”
This article was written with support from the American Community Media Fellowship Program.
Source: Original article