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was more than twice as likely in low-income <br />census tracts with limited market-rate housing <br />construction than in low-income census tracts with <br />high construction levels. <br />Relationship Remains After Accounting for <br />Economic and Demographic Factors. Other factors <br />play a role in determining which neighborhoods <br />experience displacement. A neighborhood’s <br />demographics and housing characteristics probably <br />are important. Nonetheless, we continue to find <br />that increased market-rate housing construction is <br />linked to reduced displacement after using common <br />statistical techniques to account for these factors. <br />(See the technical appendix for more details.) <br />CONCLUSION <br />Addressing California’s housing crisis is <br />one of the most difficult challenges facing the <br />state’s policy makers. The scope of the problem <br />is massive. Millions of Californians struggle to <br />find housing that is both affordable and suits <br />their needs. The crisis also is a long time in the <br />making, the culmination of decades of shortfalls <br />in housing construction. And just as the crisis has <br />taken decades to develop, it will take many years <br />or decades to correct. There are no quick and easy <br />fixes. <br />The current response to the state’s housing <br />crisis often has centered on how to improve <br />affordable housing programs. The enormity of <br />California’s housing challenges, however, suggests <br />that policy makers look for solutions beyond these <br />programs. While affordable housing programs <br />are vitally important to the households they <br />assist, these programs help only a small fraction <br />of the Californians that are struggling to cope <br />with the state’s high housing costs. The majority <br />of low-income households receive little or no <br />assistance and spend more <br />than half of their income on <br />housing. Practically speaking, <br />expanding affordable <br />housing programs to serve <br />these households would be <br />extremely challenging and <br />prohibitively expensive. <br />In our view, encouraging <br />more private housing <br />development can provide <br />some relief to low-income <br />households that are unable <br />to secure assistance. While <br />the role of affordable <br />housing programs in <br />helping California’s most <br />disadvantaged residents <br />remains important, <br />Building Market-Rate Housing <br />Appears to Reduce Displacement <br />Percent of Low-Income Bay Area Census Tracts That <br />Experienced Displacement Between 2000 and 2013 <br />Figure 3 <br />Low <br />High <br />10 <br />20 <br />30 <br />40% <br />All Communities Communities Without <br />Inclusionary Housing <br />Amount of Market-Rate <br />Housing Construction <br />Graphic Sign Off <br />Secretary <br />Analyst <br />MPA <br />Deputy <br />ARTWORK #160020 <br />Template_LAOReport_mid.ait <br />10 Legislative Analyst’s Office www.lao.ca.gov <br />AN LAO BRIEF8.A - Page 18