Study Homeownership Equation

Concerned by some of the lowest home ownership rates in Los Angeles County, Glendale city officials have wisely embarked on a program to turn tenants into owners. Although still in its early phases, the push seeks to bump the rate of home ownership to 60%.

Some housing experts and social scholars suggest that communities with high rates of home ownership enjoy benefits as diverse as less crime and better schools. The reasoning: Residents want to protect their investments and put down roots in their community--making them more willing to watch out for their neighbors and work for better schools.

Already, Glendale’s City Council has earmarked $20,000 for a study examining the barriers to home ownership in the city. Even without the study, city officials know that Glendale home prices are higher than the countywide average and that the city has little available land on which to build new houses or condominiums. The study should provide the data city officials need to craft a sensible strategy.

The worst thing Glendale leaders can do, though, is to jump on the problem before they understand how their efforts will play out. For instance, the conversion of apartments into condominiums could force out renters who could not or did not want to buy their unit. Cities have an obligation to house all residents--not just the ones who can afford a home of their own.

More effective are partnerships with developers that allow for the construction of low-cost housing. The city, for example, can allow a developer to build more units than city rules allow in exchange for a promise that at least some of the units be set aside for low- and moderate-income families. Over time, arrangements like that can create a whole new class of homeowners.