Last Friday, Jay was invited by the Federal Reserve Bank of San Francisco to speak on a panel on innovative solutions to housing affordability. The event focused on practical ways to increase the supply of housing- to build more housing to meet the incredible demand that is driving up housing costs in the Bay Area.
Coliving is a tool for increasing the supply of affordable-by-design housing:
Houses more people on a square footage basis than average apartments
Does not require public subsidies. In some cases, a subsidy as much as $300k is required to maintain just one affordable unit of housing 2 people. In coliving this same $300k could be structured as a public investment to create housing for 10 people, with the $300k eventually returned back to an affordable housing trust to fund more housing.
In Oakland, those who make less than $48k / yr are considered low income. This is half of average income, i.e. 50% Area Median Income or AMI)
If no more than 30% of wages go to rent, this is considered affordable housing. Average rents in OpenDoor coliving houses meet this mark for low income people (at 50% AMI)