Public officials, researchers, business organizations, and real estate developers agree that the State of California has a housing crisis. The current shortage of housing, particularly affordable housing, developed over decades. “As part of the 2020 Census, the Census Bureau undertook a full accounting of the nation’s housing stock,” wrote researchers in a 2021 report called New Housing Fails to Make Up for Decades of Undersupply from the nonprofit Public Policy Institute of California. “By this measure, California’s new housing has fallen short of population growth. The state added 3.2 times more people than housing units over the last 10 years.”

Regional Housing Challenges

Like many regions throughout the Bay Area and state, the Tri-Valley grapples with a shortage of all types of housing; in particular, affordable housing. Teachers are among those who wonder if they will be forced to move out of the area. “Public education, like many sectors, continues to struggle with employee recruitment, retention, and morale coming out of the pandemic,” the Pleasanton Weekly reported in September. “Tri-Valley teachers have said they are feeling the financial burdens of high inflation and a prohibitive housing market–and that without appropriate compensation packages, they will either be forced to move school districts or leave the industry altogether.”

The area’s future is also threatened by the housing shortfall. “Barring significant shifts in supply or demand, housing affordability is likely to remain a key barrier to the Tri-Valley’s long-term economic growth,” according to Tri-Valley Vision 2040, a report produced in August 2021 by business nonprofits Innovation Tri-Valley Leadership Group and the Bay Area Council Economic Institute. “If the Tri-Valley’s population is to grow by 2040, the region will require a large number of new housing units. While there is no single policy that will solve housing affordability in the Tri-Valley, added supply of ALL housing types for ALL types of households is needed to address the housing crisis.”

More than one year of stakeholder engagement and more than 1,000 points of input across workshops, webinars, surveys, focus groups, and interviews informed the development of Tri-Valley Vision 2040. “There was general agreement among stakeholders that the Tri-Valley should continue to preserve its open spaces and neighborhood character, and participants agreed that building upward will likely be limited to areas along the I-580 and I-680 corridors,” notes the report. “Stakeholders also agreed that without sufficient housing, businesses will have a hard time recruiting and retaining their employees. If inventory is not increased, rising housing costs are likely to price new residents out of the market altogether.”

Moreover, “housing affordability is also critical at lower income levels–meaning that creating a housing future that includes both subsidized and market-rate units, allows for home ownership at a variety of price points, and mixes access to transportation networks and jobs will be needed to achieve an inclusive Tri-Valley in 2040.”

Pleasanton Housing Units Set to Grow

Teachers are not the only ones who suffer from the region’s high housing costs. First responders, health workers, and those who staff popular businesses also struggle to afford homes. James Cooper, President and CEO of Pleasanton Chamber of Commerce, is one of many concerned about the issue. “If you asked established professionals and successful business owners here in Pleasanton if they could move to this community today, a lot would tell you they couldn't,” Cooper says. “These are successful people but there's no way they could afford to move into this community now. The bar for entry is too high from a cost standpoint.”

Ellen Clark, the City of Pleasanton’s Director of the Community Development Department, is well aware of the challenges. “Housing affordability has been identified as a key local concern by many of our residents and is a very important issue for the City,” she says. “Though not unique to Pleasanton, high local housing prices make it difficult for working families to live near where they work, necessitating long commutes;  for employers to attract and retain workers; and for those who grew up here to have the opportunity to stay here. Addressing our local housing needs is critical to maintaining a stable and diverse community, and supporting the economic health and vitality of Pleasanton businesses.”

According to the California Department of Housing and Community Development, “California’s Housing Element Law acknowledges that, in order for the private market to adequately address the housing needs and demand of Californians, local governments must adopt plans and regulatory systems that provide opportunities for (and do not unduly constrain) housing development. As a result, housing policy in California rests largely on the effective implementation of local general plans and, in particular, local housing elements.”

Almost all housing is produced by the private market. The “level of local, state, and federal funding needed to subsidize and support below-market-rate housing far outstrips available resources,” notes Clark. “But the City is able to offer some tools to help meet this important need.” One tool is zoning, which provides the opportunity for the private sector to build more housing units, she says. Another is Pleasanton’s Inclusionary Zoning Ordinance.

In terms of zoning, Pleasanton’s most recent Housing Element “designated 20 new sites to allow residential development and created a streamlined review process to help facilitate these units getting built with less uncertainty and delay,” says Clark. “Sites include several locations in Hacienda, where proximity to employment and easy BART and freeway access make housing a natural fit.”

The Inclusionary Zoning Ordinance (IZO) requires market-rate projects to dedicate 15% or 20% of their units as deed-restricted, affordable units. Over the last decade, the majority of the affordable housing units in Pleasanton have been produced through the IZO, according to Clark. “For example, the AvalonBay housing development next to Rosewood Commons, which expects to see construction begin in Spring 2024, will include 46 affordable units as part of its 305-unit development. The City is currently processing applications for several housing projects on sites identified in the Housing Element, and looks forward to seeing these developments move forward, helping to provide more housing opportunities in coming years.”

In 2022, developer AvalonBay Communities took over this Hacienda project, now called AvalonBay Pleasanton, some 10 years after it was envisioned. In addition to more than 300 new rental units, the AvalonBay Pleasanton project will include a variety of amenities, including a fitness center and community center. Many of the units will feature porches or balconies. The commercial space being built will likely house a childcare facility.

"We took the project as it was originally entitled and updated it to respond to today’s market conditions by making a few changes in the façade, landscaping, and unit mix,” says Nora Collins, Senior Development Director for AvalonBay Communities. "There was a higher number of studios originally, and fewer two- and three- bedroom units. We believe there are more families that want to live in Pleasanton, which has an amazing school district. So we wanted to broaden the range of the residents who could live there as well as update the design to be more contemporary.”

Making it easier for families to continue to thrive in Pleasanton is a shared goal for many. “It resonates deeply with me for families to be able to see their children progress to become homeowners, to become employed, to raise their own families, and to take their kids to the same schools they themselves attended,” Cooper says. For that to happen, “we need jobs, and we need more affordable housing.”

Such housing cannot be developed overnight, and it cannot be built by public officials. But the zoning changes included in Pleasanton’s new state-certified Housing Element and projects like AvalonBay Pleasanton show that change is possible. AvalonBay Pleasanton is expected to welcome new tenants in about two years.

AvalonBay Communities also owns and operates Eaves Pleasanton, which is an apartment community next door to the new project. “We have been thrilled with Pleasanton over the last number of years,” notes Collins. “We think it's a great place to be investing and a great place to live. We are excited to bring a thoughtful, well-designed, and amenity-rich housing project to life in an incredible community that is transit oriented and has a great walkable downtown."

For more information about Innovation Tri-Valley Leadership Group and Tri-Valley Vision 2040, please visit www.innovationtrivalley.org.

For more information about the Bay Area Council Economic Institute, please visit www.bayareaeconomy.org.

For more information about the Pleasanton Chamber of Commerce, please visit www.pleasanton.org.

For more information about the City of Pleasanton’s Community Development Department, please visit www.cityofpleasantonca.gov/gov/depts/cd/default.asp.

For more information about AvalonBay Communities, please visit www.avaloncommunities.com/about-us.