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Reality Check
Despite the rosy forecast in certain business
segments, the Valley has reached a zero sum for economic
growth. Due to the scarcity of housing and high cost of
living many businesses are experiencing great difficulty
attracting new employees. When businesses are able to
fill positions they often have to pay a premium for
skilled workers, and the increase in operating costs is
compounded by ever-increasing global competition. The
end result is that many businesses are experiencing
lower profitability than they would be able to attain in
a more competitive jobs/housing market.
With the median price for a
single-family home in the Goleta Valley hovering just
under $1 million, the average family will need to earn
in excess of $100,000 each year to qualify for a typical
mortgage. Current studies place the median household
income in the Valley far short of that at less than
$70,000. No-Growth policies and impediments to
development exacerbate the problem and make it less and
less likely that high-tech and other well-paying jobs
will stay in the area. Often these jobs are replaced
with lower paying service positions and the workers are
found commuting on Highway 101 during the week.
Among the organizations working to
counteract the effects of the housing and workforce
shortages are the Goleta Valley Chamber of Commerce, the
Coastal Housing Partnership and the Santa Barbara
Industrial Association. These groups, and others,
promote policy changes that would ease the burden on
businesses facing the heightented impediments in the
region. Coastal Housing Partnership offers employers a
discount program to assist employees with
home-ownership. These groups are endeavoring to promote
proactive solutions like local preference policies for
new housing and long-term affordability programs. |
