In a place like San Mateo County, where the cost of living is high and the need for housing is greater than ever, it can be tempting to focus all efforts solely on affordable units. But here's the reality: building market-rate housing is an essential part of the equation when it comes to making housing affordable for everyone. With Measure T, we have a unique opportunity to address this issue strategically—building up, building smart, and ensuring housing that works for all income levels. Let’s take a closer look at why market-rate housing is crucial in this mix.
Increasing Supply and Relieving Pressure
One of the biggest reasons we have a housing crisis is a fundamental mismatch between supply and demand. When there aren’t enough homes, everyone ends up competing for the same limited options, which drives prices sky-high. By building more market-rate housing, we increase the overall housing supply. This helps alleviate the pressure across all price points because more availability means less competition. Measure T makes it possible to add these units in locations where people *want* to live—near transit, downtown, and other amenity-rich areas. As market-rate units come online, competition eases, making the entire market more accessible for all residents, including those who rely on affordable options.
Funding Affordable Housing Through Development Fees
Measure T is not just about adding more housing units—it's about using those units to support affordability in a broader sense. In San Mateo County, developers of market-rate housing contribute to affordable housing through mandated inclusionary zoning or impact fees. These fees go directly into funding affordable units across the community, creating a virtuous cycle. The more market-rate housing we build, the more resources we have for affordable housing development. It’s a direct, sustainable way to fund affordability without solely relying on government subsidies or limited public resources.
The Filtering Effect—A Natural Housing Ladder
Housing markets have a phenomenon called the "filtering effect," where as new market-rate units come into play, they gradually make older housing more affordable. Picture it like a ladder—people move up into newer units as their income allows, freeing up existing homes that become available at lower price points. This is how housing markets organically support a range of incomes. Measure T supports this dynamic by promoting new construction where it's most effective—central areas with access to transit and amenities. By focusing growth in strategic locations, we can speed up this filtering process and open up more options for middle- and lower-income families.
Cross-Subsidization in Mixed-Income Developments
Mixed-income developments are a big part of creating inclusive communities. Market-rate units are often the economic backbone that allows affordable units to exist in these projects. The revenue generated from market-rate rentals or sales can cross-subsidize affordable units, making it financially viable for developers to include them in their projects. Measure T helps create the conditions for these mixed-use, mixed-income projects to thrive in San Mateo by reducing unnecessary red tape and promoting development in well-suited areas. This makes it possible for developers to include affordable housing without needing huge subsidies or grants, which are always in short supply.
Efficient Use of Resources and Infrastructure
In San Mateo, land is scarce, and it's clear we need to use what we have efficiently. Measure T is all about building in places that already have the infrastructure to support growth—places that are near public transportation, near jobs, and near services. This focus makes developing market-rate housing not only smart but also cost-effective. When market-rate housing is added in these infill areas, it keeps infrastructure costs down, which benefits everyone. Lower infrastructure costs mean more funds can be funneled toward building and maintaining affordable housing. It’s about being resource-efficient and ensuring that every dollar is spent where it has the most impact.
Why Market-Rate Housing, Paired With Affordable Housing, is Key with Measure T
Measure T is designed to address our housing crisis holistically. It’s not about choosing between affordable and market-rate housing—it’s about understanding how both play critical roles in building a livable, diverse, and accessible community. Market-rate housing supports affordability by increasing supply, generating funding for affordable units, and ensuring that new development fits within the fabric of San Mateo.
Research supports Measure T in San Mateo as a pivotal step in making housing more accessible for all. By allowing for increased density in appropriate areas, we make room for more market-rate units that ultimately benefit everyone—from those looking for a place to start their journey in San Mateo to families in need of affordable options.
If we want a San Mateo that’s inclusive, resilient, and ready for the future, we need to think about housing comprehensively. Measure T provides the path to grow in a way that serves all income levels, ensuring that as our community evolves, it does so in a way that leaves no one behind. It’s about creating options, supporting diverse housing opportunities, and making smart choices for the community we love.
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