☆ Oliverio concurs with Mahan's market-oriented housing plans

Planning Commissioner Pierluigi Oliverio finds a lot to agree with in Mayor Mahan's supply-side housing direction, as outlined in a recent interview with the Silicon Valley Business Journal. Oliverio notes, however, that a looming recession and increased work from home may put a damper on new construction of all sorts. An Opp Now exclusive.

Mayor Mahan is correct when he says that it's impossible for SJ--or any community--to build subsidized low income housing for everybody who might want or need it. So with finite tax dollars, of course you should build out as much subsidized housing as you can. But you need to create an economic ecosystem that allows market forces to deliver the vast lion's share of the housing you want--and apply gov't resources to vouchers and subsidies for the working poor to remain in existing housing that need it to make ends meet. It is important to note in the USA it is the private sector that has historically built, and continues to build, housing--and not the government.

There has been a lot of discussion about designing for affordability by decreasing square footage per unit so housing costs are lower. Which is similar to Mayor Mahan's overall thought process, that if there is more housing in the aggregate that would drive down or flatten the cost of housing.

It's important to note, however, that broader economic factors such as interest rate increases, recession, people working from home--mean we have entered a period of slow growth of new construction. This may represent a silver lining for people who are opposed to development--as there may not be much of that. However, this also means that there will be fewer jobs for their family, friends, and neighbors which ultimately affects government revenues. 

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