More Rental Housing is NOT the Answer

by ROGER GITLIN

Revive the American Dream

The Crescent City Planning Department has approved another high-density rental housing project.

City leaders say more housing is needed. That may be true.

But when nearly 20 percent of our residents live in poverty, the type of housing we build matters.

More RENTAL housing may provide shelter, but it does not build equity for the occupant. When one rents, monthly payments go to the landlord. The owner builds wealth. The tenant receives a receipt.

When one buys rather than rents, each mortgage payment builds equity. Over time, that equity becomes security, leverage, and opportunity.

Tenants and buyers both need housing — but only one builds wealth through it.

And rental apartments are only part of the picture.

A search of Airbnb alone shows more than 350 active vacation rental listings across Del Norte County, not including other platforms. That means hundreds of homes — roughly five percent of the county’s housing inventory — are operating as short-term lodging rather than housing local families.

And we wonder why houses in Del Norte are so expensive. Supply and demand, anyone?

So while we continue building rental units, existing homes are increasingly serving visitors.

Where, then, are the homes being built for ownership?

Where are the starter homes?
Where are the condominiums for purchase?
Where are the first-time buyer opportunities?

The City of Crescent City approves projects within city limits.
Del Norte County regulates land use outside the city.

But housing serves one very diverse community.

On the national stage, large institutional buyers are increasingly purchasing single-family homes and converting them into rental portfolios across America. In some markets, they account for a measurable share of purchases. When homes are bought by investment funds rather than families, supply tightens further and competition increases.

Del Norte does not exist in isolation. National housing pressures eventually reach small communities.

If we add rental inventory while hundreds of homes function as vacation rentals — and broader market forces favor large-scale rental ownership — the path to local ownership narrows.

After City Planning approved the architectural plan for an additional 14 units on J Street, I met with developer Sam Schauerman about the American Dream of homeownership. I was pleased to learn of his concern regarding the recent explosion of rental housing. We discussed the importance of balancing the addition of rental units with more single-family and townhome projects that create equity opportunities.

Schauerman shared his plans with EYE ON DEL NORTE to build 24 Planned Urban Development (PUD) townhomes on the vacant lot off Washington Boulevard and Harrold Street. The target price would be approximately $379,000 — potentially serving corrections officers, teachers, medical staff, and many government employees who currently rent in Del Norte.

Schauerman and Elk Creek Builders also own land in Smith River for a proposed 76-home subdivision on half-acre parcels, featuring 1,500–1,800 square foot homes. The major issue facing that project involves updating water infrastructure to accommodate the build — an issue we will be examining further in an upcoming report.

In a previous housing post, EYE ON DEL NORTE incorrectly reported that the 56-unit Roosevelt Estates project on California Avenue was a subsidized rental development. The project, now fully rented, leases at market rates.

The American Dream is and remains ownership.

Parents should instill in their children the importance of homeownership. City and county leaders should start building toward that dream.