Each year in the spring, we celebrate Congress’ passage of the groundbreaking Fair Housing Act in 1968 to prohibit discrimination in the sale, rental and financing of housing based on protected class status including race, religion or nationality.
This landmark bill gave aspiring homebuyers new hope that they could achieve the American Dream of homeownership with fewer barriers to entry.
But, with today’s challenging housing market—characterized by higher financing costs, significant home price appreciation and the depressive impact of inflation on household incomes—inequities and barriers remain that often close off opportunities for homebuyers who have historically been underserved or faced discrimination.
Like most of the country, Orange County is currently facing a housing crisis.
Homeownership rates have been declining steadily for some time, and low- and moderate-income families have struggled with high rental burdens and other inflation-related burdens as they try to enter a housing market characterized by low supply and high prices.
California is one of the five most expensive states in which to buy a home, and at $1.3 million, the median home price in Orange County is 250% higher than the national average. Nearly one-third of residents spend more than 50% of their household income on rent, leaving little room for financial stability. And the California Association of Realtors’ most recent Traditional Housing Affordability Index showed that aspiring homeowners in Orange County need to earn an annual salary of $349,200 to afford the median-priced home.
What to Do?
Thanks to the Fair Housing Act, the housing industry has made strides in combating systemic discrimination against protected classes. And yet, while practices like redlining are prohibited, our work is far from done as barriers to affordable housing persist.
In addition to outright discrimination, communities throughout the U.S. remain underserved, through either a lack of services or policies that have the effect of limiting opportunities for affordable homeownership.
According to the National Association of Realtors, the homeownership gap between Black and white Americans has widened to 28%, highlighting the need to continue advocating for inclusive housing policies for every American at the local, state and federal level.
Despite the growing demand, housing production in Orange County has fallen far short of the need. As the population continues to grow, supply and demand imbalances will continue to exacerbate inequality and limit opportunities, especially for our low- and moderate-income families.
To close the gap, it’s crucial for elected officials to enact practical and forward-looking zoning regulations that allow homebuilders to build new homes.
We need inclusive and sensible housing policies that provide accessibility solutions in every new home development, including more allotment of multifamily units and accessory dwelling units (ADUs), and a greater number of designated affordable homes.
In addition, lenders and government sponsored agencies must continue to innovate by introducing new products and options to broaden access to home loans.
Also, we must make it easier for potential homebuyers to be better informed about the myriad of down payment assistance programs that so many have access to, but so few use. Policy makers want to make housing more affordable, but we need to work together within the constraints of today’s reality to create a responsible and sustainable path to homeownership.
Doing Our Part
We are working towards making housing more accessible and available.
LoanDepot offers the industry’s deepest portfolio of lending products and tools aimed at supporting home affordability.
From offering zero and one percent downpayment options to accepting sources of non-traditional credit to helping our customers navigate local market downpayment assistance programs, we work to remove barriers and make homeownership more accessible for all borrowers.
Habitat for Humanity of Orange County has a goal to complete 100 new affordable homes over the next three years. This would not be possible without the support and generosity of partners like loanDepot.
They have been an invaluable partner in helping us achieve our mission to provide safe and affordable homeownership for families in Orange County with 412 volunteer hours and monetary donations to Habitat OC over the past year.
There’s also a pressing need for greater public and private funding to support nonprofits like Habitat for Humanity of Orange County and similar organizations that are actively building, preserving and repairing homes to create safe and affordable places to live in partnership with low- and moderate-income families.
If everyone—local government, financial institutions, the housing industry, non-profits and the community at large—comes together, we can collaboratively develop innovative solutions that foster a more equitable community with greater levels of homeownership.
If everyone gets involved and does their part, we can empower today’s underserved homebuyers to embark on a journey that promotes economic mobility, creates stronger and more stable neighborhoods, and builds financial well-being. This is essential for cultivating a thriving Orange County.
Everyone deserves a safe and affordable place to call home. Together, we can grow homeownership and, in the process, build a stronger, more equitable Orange County for all.
Editor’s Note: Frank Martell is CEO of Irvine-based loanDepot, one of the nation’s largest providers of mortgages that has issued more than $275 billion in loans since its inception in 2010 (NYSE: LDI). Michael Valentine is CEO of Habitat for Humanity of Orange County, which has built or rehabilitated 239 affordable homes in the past 35 years. Visit HabitatOC.org for more information.
