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CONSTRAINTS IN MEETING PLEASANTON'S HOUSING NEEDS <br /> <br />Many households are unable to find affordable housing in Pleasanton. <br />The high costs are primarily due to market and institutional con- <br />straints which may either a) directly limit the supply of housing <br />or b) indirectly impose higher costs in the construction and <br />financing of a home. <br /> <br />Market Constraints <br /> <br />Excess Demand/Limited Supply: High housing prices reflect the <br />excess demand for housing relative to its limited supply. <br />Pleasanton's beauty, attractive climate, and relative proximity <br />to the San Francisco Bay Area make it a sought after residence by <br />the young and the old alike. It is anticipated that demand for <br />housing will increase even more in Pteasanton with the numerous <br />business parks now under construction. Yet, the housing stock <br />has been limited by market and institutional factors, such as <br />the high cost of constructing housing, Pleasanton's growth manage- <br />ment program (see discussion below) and most importantly, since <br />1971, by the inability to provide sufficient sewage treatment <br />service. This imbalance between supply and demand is one reason <br />why the sales price for a typical new single-family home in <br />Pleasanton is approximately $122,682 (see Table 19). <br /> <br />Financing Costs: Even with traditional single digit mortgage <br />rates, financing more than doubled the cost of a home over a <br /> <br />30 year period. With today's 16%-18% rates and the purchase <br />price over $100,000 mortgage costs can well exceed $1,000.00 per <br />month for a single family home. Today's high interest rates can <br />make qualifying for financing simply impossible for a large <br />segment of the public. Escalating interest costs also affect <br /> <br /> <br />