Letters: Building more won’t solve California’s housing crisis. Here’s what’s driving up costs

Regarding “Someone is buying up a historic coastal city. Is it the next California Forever?” (Soleil Ho, SFChronicle.com, Dec. 14): While buying most of a town may raise eyebrows, it’s private equity’s growing grip on the housing market undermines affordability.

Institutional investors accounted for 28% of single-family home purchases nationwide in 2022, up from 19% in 2021, according to the Harvard Joint Center for Housing Studies. In lower-cost housing markets, Redfin found that investors targeted 26% of the most affordable homes, effectively shrinking opportunities for first-time buyers.

In California, this trend is reshaping communities. Private equity firms often convert purchased homes into high-rent properties, prioritizing profit over affordability. This drives up home prices and rental costs while pricing out local families. In 2023, the average rent increase nationally of 7.95% was more than double the general inflation rate of 3.4%.

The U.S. Department of Housing and Urban Development highlights the disproportionate impact of investor activity in high-demand regions like California. This is happening largely because the wealthiest Americans have so much money, they have difficulty finding places to invest it.

We can’t solve the housing crisis by building alone. Addressing systemic issues like unchecked investor activity is critical to keeping housing a public good, not just a financial asset.

Michael Moore, Walnut Creek

Insurance only part of problem 

Regarding “It’s understandable why the killing of UnitedHealthcare’s CEO is cheered by so many” (Letters to the Editor, SFChronicle.com, Dec. 17): There is no doubt insurance companies are greedy, but they are no more so than other actors in the health care sector. 

If there were no insurance companies, health care providers would have to lower their prices so people could afford to buy their services. The ultimate problem is not one of greed; it is the economic problem of unlimited need and limited resources. 

If patients had to pay their own bills, they would have to make decisions about how much care they want and at what price. Paying insurance companies to assume this burden does not eliminate the need to reconcile unlimited needs with limited resources. 

And moving to a single-payer scheme will not solve this problem. 

European and Canadian health care systems face shortages of nurses and doctors because the workload is high and the pay is too low. These countries seek to solve the economic problem by restricting the incomes of health care workers, which creates shortages and necessitates long wait times for service. 

Leslie Mangus, San Francisco

Letter incites violence

Regarding “It’s understandable why the killing of UnitedHealthcare’s CEO is cheered by so many” (Letters to the Editor, SFChronicle.com, Dec. 17): Letter writer Dave Davidson’s incoherent, inflammatory rhetoric not only bordered on libel but shockingly implied assassination is a fair response to issues with health insurers. This is beyond the bounds of acceptable public discourse.

The Chronicle has a duty to foster meaningful debate, not amplify dangerous calls to violence. It should uphold higher editorial standards.

Eric de Regnaucourt, Foster City

Mandate gun storage

Regarding “The Latest: Student who opened fire at Wisconsin school identified as a 15-year-old girl” (U.S. & World, SFChronicle.com, Dec. 17): Research shows that most under-18 school shooters get their guns from their homes or a close relative. America is the only country where school shootings are routine, but we are not helpless. 

Gun owners must lock up their guns.

Predictably, Wisconsin Gov. Tony Evers is offering prayers. He must do more. Wisconsin “prohibits the reckless storage of a loaded firearm within reach of a child under 14.” A 15-year-old girl should not have access to a gun, either. 

Next year, Wisconsin could pass the same law as California requiring that every gun is locked up. Secure storage helps stop tragedies by preventing impulsive actions and unintended access. 

Secure storage is mandatory in many other countries to protect families and communities from being torn apart by gun homicide and suicide. 

We can do better in America. 

Kath Tsakalakis, board member, Brady United Against Gun Violence