What are avocados good for??




Fun Facts About Avocados

Fun Facts About Avocados


Not too long ago, there were a whole lot of agricultural crops grown in Orange County. These days, much of that agricultural land is filled with houses, retail and office space. Fortunately, there are still many acres dedicated to avocados that make their way to local Vons stores and other markets and restaurants throughout the country.

I visited a large grove in Irvine where I got to see the trees, baby avocados that will become next year’s crop and avocados that are ready for picking. The climate here near the ocean is great for producing delicious and nutritious avocados.

Fun Facts About Avocados

Here are some fun facts about avocados:

  • The Haas Avocado began here in Southern California. It’s named after breeder Richard Haas who grew the first tree in La Habra Heights in 1926. Haas rhymes with ‘class’ even though a whole lot of people pronounce it differently.
  • About 90% of US grown avocados come from California and many are grown on family farms. You can check for the California sticker on the fruit when you’re shopping. Yes, avocados are fruit, not vegetables.

Fun Facts About Avocados

  • California Avocados have a long season. They are generally available from Spring until Fall. An avocado can remain on the tree during the season and will finish ripening after it’s picked.
  • An avocado is ripe when it ‘yields to gentle pressure.’ If you want to speed up the ripening, you can put the avocado in a paper bag along with a kiwi or banana.

Fun Facts About Avocados

  • Avocados are nutrient dense. They contain mono and poly-unsaturated fats – the ‘good’ fats! There is no sodium, no cholesterol and no sugar in an avocado. They are also quite delicious, so you can easily add this nutrition to just about any meal.
  • To bake with avocados, you can swap mashed avocado for butter or shortening. It’s an even swap, so it’s easy to make the substitution when you’re following a recipe. This is an easy way to cut calories and reduce saturated fat.

Fun Facts About Avocados

Check out my big list of over 50 avocado recipes. Here are a few of my favorites:

Mango Lime Guacamole
Avocado Chocolate Chip Cookie Bars
Strawberry Avocado Smoothie

Are you hungry, yet?

Fun Facts About Avocados


Thank you to Vons and the California Avocado Commission for hosting my fun farm tour in Irvine.



Healthy eating and avocados go hand in hand. Whether it’s calories, fiber, saturated fat or cholesterol, avocados have more of what you want and less of what you don’t want. Naturally cholesterol-free, avocados spreads, toppings and dips are a creamy and nutritious alternative to saturated fat laden recipes. When you compare the numbers, they tell a deliciously satisfying story:

Fresh avocado on sandwiches and toast or substituted as a spread in place of many other popular foods may help reduce dietary intake of calories, fat, saturated fat, sodium and cholesterol.



Creamy spreads, dips and toppings made from California Avocados add a tasty twist to your meals, and a 50 gram serving of fresh avocados contains 0mg of cholesterol, 0mg of sodium, 0 sugar and 0.5g saturated fat. See the chart for how avocados compare as a substitute on sandwiches, toast and in place of other popular foods.


  • Substituting fresh healthy avocado in sandwiches, on toast or as a spread in place of many other popular foods may help reduce intake of calories, fat, saturated fat, sodium and cholesterol.
  • Want to reduce your intake of saturated fat and cholesterol? Try substituting fresh healthy avocado in sandwiches, on toast or as a spread in place of many other popular foods to reduce intake of saturated fat, cholesterol, sodium and calories.
  • Looking for a twist on spreads and dips? One serving of fresh healthy avocado (one-third of a medium avocado) contains no cholesterol, no sodium and 1 g of saturated fat. See the chart below for examples of how fresh avocados are great in sandwiches, on toast or substituted as a spread in place of many other popular foods.




B/W sketch

Persea species


Common Name: Avocado, Alligator Pear (English); Aguacate, Palta (Spanish)

Origin: The avocado probably originated in southern Mexico but was cultivated from the Rio Grande to central Peru before the arrival of Europeans.

Species: Guatemalan (Persea nubigena var. guatamalensis L. Wms.), Mexican (P. americana var. drymifolia Blake), West Indian (P. americana Mill. var. americana). Hybrid forms exist between all three types.

Related species: Coyo (Persea schiedeana Nees), Anay (Beilschmiedia anay Kosterm)

Adaptation: Avocados do well in the mild-winter areas of California, Florida and Hawaii. Some hardier varieties can be grown in the cooler parts of northern and inland California and along the Gulf Coast. The northern limits in California is approximately Cape Mendocino and Red Bluff. Avocados do best some distance from ocean influence but are not adapted to the desert interior. West Indian varieties thrive in humid, tropical climates and freeze at or near 32° F. Guatemalan types are native to cool, high-altitude tropics and are hardy 30 – 26° F. Mexican types are native to dry subtropical plateaus and thrive in a Mediterranean climate. They are hardy 24 – 19° F. Avocados need some protection from high winds which may break the branches. There are dwarf forms of avocados suitable for growing in containers. Avocados have been grown in California (Santa Barbara) since 1871.


Growth Habit: The avocado is a dense, evergreen tree, shedding many leaves in early spring. It is fast growing and can with age reach 80 feet, although usually less, and generally branches to form a broad tree. Some cultivars are columnar, others selected for nearly prostrate form. One cultivar makes a good espalier. Growth is in frequent flushes during warm weather in southern regions with only one long flush per year in cooler areas. Injury to branches causes a secretion of dulcitol, a white, powdery sugar, at scars. Roots are coarse and greedy and will raise pavement with age. Grafted plants normally produce fruit within one to two years compared to 8 – 20 years for seedlings.

Foliage: Avocado leaves are alternate, glossy, elliptic and dark green with paler veins. They normally remain on the tree for 2 to 3 years. The leaves of West Indian varieties are scentless, while Guatemalan types are rarely anise-scented and have medicinal use. The leaves of Mexican types have a pronounced anise scent when crushed. The leaves are high in oils and slow to compost and may collect in mounds beneath trees.

Flowers: Avocado flowers appear in January – March before the first seasonal growth, in terminal panicles of 200 – 300 small yellow-green blooms. Each panicle will produce only one to three fruits. The flowers are perfect, but are either receptive to pollen in the morning and shed pollen the following afternoon (type A), or are receptive to pollen in the afternoon, and shed pollen the following morning (type B). About 5% of flowers are defective in form and sterile. Production is best with cross-pollination between types A and B. The flowers attract bees and hoverflies and pollination usually good except during cool weather. Off-season blooms may appear during the year and often set fruit. Some cultivars bloom and set fruit in alternate years.

Fruits: West Indian type avocados produce enormous, smooth round, glossy green fruits that are low in oil and weigh up to 2 pounds. Guatemalan types produce medium ovoid or pear-shaped, pebbled green fruits that turn blackish-green when ripe. The fruit of Mexican varieties are small (6 – 10 ounces) with paper-thin skins that turn glossy green or black when ripe. The flesh of avocados is deep green near the skin, becoming yellowish nearer the single large, inedible ovoid seed. The flesh is hard when harvested but softens to a buttery texture. Wind-caused abrasion can scar the skin, forming cracks which extend into the flesh. “Cukes” are seedless, pickle-shaped fruits. Off-season fruit should not be harvested with the main crop, but left on the tree to mature. Seeds may sprout within an avocado when it is over-mature, causing internal molds and breakdown. High in monosaturates, the oil content of avocados is second only to olives among fruits, and sometimes greater. Clinical feeding studies in humans have shown that avocado oil can reduce blood cholesterol.


Location: Avocados will grow in shade and between buildings, but are productive only in full sun. The roots are highly competitive and will choke out nearby plants. The shade under the trees is too dense to garden under, and the constant litter can be annoying. In cooler areas plant the tree where it will receive sun during the winter. Give the tree plenty of room–up to 20 feet. The avocado is not suitable for hedgerow, but two or three trees can be planted in a single large hole to save garden space and enhance pollination. At the beach or in windy inland canyons, provide a windbreak of some sort. Once established the avocado is a fairly tough tree. Indoor trees need low night temperatures to induce bloom. Container plants should be moved outdoors with care. Whitewashing the trunk or branches will prevent sunburn.

Soil: Avocado trees like loose, decomposed granite or sandy loam best. They will not survive in locations with poor drainage. The trees grow well on hillsides and should never be planted in stream beds. They are tolerant of acid or alkaline soil. In containers use a planting mix combined with topsoil. Plastic containers should be avoided. It is also useful to plant the tub with annual flowers to reduce excess soil moisture and temperature. Container plants should be leached often to reduce salts.

Irrigation: Avocado trees may not need irrigation during the winter rainy season, but watch for prolonged mid-winter dry spells. Over irrigation can induce root which is the most common cause of avocado failure. To test to see if irrigation is necessary, dig a hole 9 inches deep and test the soil by squeezing. If it is moist (holds together), do not irrigate; if it crumbles in the hand, it may be watered. Watch soil moisture carefully at the end of the irrigating season. Never enter winter with wet soil. Avocados tolerate some salts, though they will show leaf tip burn and stunting of leaves. Deep irrigation will leach salt accumulation.

Fertilization: Commence feeding of young trees after one year of growth, using a balanced fertilizer, four times yearly. Older trees benefit from feeding with nitrogenous fertilizer applied in late winter and early summer. Yellowed leaves (chlorosis) indicate iron deficiency. This can usually be corrected by a chelated foliar spray of trace elements containing iron. Mature trees often also show a zinc deficiency.

Frost Protection: It is important to choose a cultivar that is hardy in your area. Mexican types are the best choice for colder regions. Plant above a slope for air drainage, or near the house for added protection. In youth, protect with rugs, towels and such spread overhead on a frame. For further protection heat with light bulbs and wrap the trunk with sponge foam. These measures also permit tender cultivars to become established in borderline locations; established trees are much hardier than young ones. The upper branches can also be top worked with hardy Mexican types, which will protect a more tender cultivar on lower branches, as well as serving as a pollinator. Harvest fruit before the frost season begins. Cold-damaged fruit turns black. Avocados are often in bloom at the time of frost and the flowers are killed, but the tree tends to rebloom. This is especially true of Mexican types.

Pruning: Columnar cultivars require pinching at early age to form a rounded tree. Others need no training. Current orchard practice avoids staking. The best results are obtained by fencing the tree with plastic mesh for the first two to three years. Container and dwarf trees will need constant staking. The skirts of avocado trees are sometimes trimmed to discourage rodents, otherwise the trees are usually never pruned. Branches exposed to sun by defoliation are extraordinarily susceptible to sunburn and will surely die. Such branches should always be whitewashed. It is better to avoid any pruning. Most cultivars are ill-adapted to espalier. They are too vigorous. Avocado fruit is self-thinning.

Propagation: Desired clonal rootstocks can be be propagated by a method known as the etiolation technique. The largest seed are planted in gallon cans and the seedlings are then grafted to a root rot tolerant clonal scion. When the stem of the graft reaches about 1/4 inch in diameter, the top is cut off leaving a whorl of buds just above the graft. A 4 inch band of black tar paper is formed into an extension of the can and filled with vermiculite and placed in a dark box with high temperature and humidity. When growth is some 3 – 4 inches above the vermiculite, the plant is removed into the light where the upper portion quickly assumes a green color. The tar paper collar is removed, the shoot is severed from the seed and then placed in flats where the cuttings are rooted in the conventional manner. Any seed may also be used for rootstock, but Mexican types make the strongest growth and are the most often used. Plant cleaned seeds as soon as they are ripe. The seedling plants are ready to bud the following year. Budding is done in January, when suitable buds are available. Larger stocks are worked by bark grafts in the spring. Scions are collected Dec – Jan after the buds are well-formed. Paint and cover the graft with a moistened plastic bag and place a vented paper bag over the whole.

Pests and diseases: Rats and squirrels will strip the fruit. Protect with tin trunk wraps. Leaf-rolling caterpillars (Tortrix and Amorbia) may destroy branch terminals. Avocado Brown Mite can be controlled by powdered sulfur. Six-spotted Mite is very harmful; even a small population can cause massive leaf shedding. A miticide may be required if natural predators are absent. Snails can be a problem in California.

Two fungi and one virus cause more damage than any pests. Dothiorella (Botryosphaeria ribis) canker infects the trunk, causing dead patches that spreads to maturing fruit, causing darkened, rancid smelling spots in the flesh. Flesh injury begins after harvest and is impossible to detect on outside. Mexican types are immune to trunk cankers but the fruit is not. The disease is rampant near the coast and has no economical control. Root Rot (Phytophthora cinnamomi) is a soil-borne fungus that infects many plants, including avocados. It is a major disease problem in California. Select disease-free, certified plants and avoid planting where avocados once grew or where soil drainage is poor. The disease is easily transported by equipment, tools and shoes from infected soils. Once a tree is infected (signs include yellowing and dropping leaves), there is little that can be done other than cut back on water. Sun Blotch is a viral disease that causes yellowed streaking of young stems, mottling and crinkling of new leaves and occasional deformation of the fruit. It also causes rectangular cracking and checking of the trunk, as if sunburned. It has no insect vector but is spread by use of infected scions, contaminated tools and roots grafted with adjacent trees. It is important to use virus-free propagating wood.

Harvest: The time of harvest depends upon the variety. Commercial standards requires fruit to reach 8% oil content before harvesting. Mexican types ripen in 6 – 8 months from bloom while Guatemalan types usually take 12 – 18 months. Fruits may continue enlarging on the tree even after maturity. Purple cultivars should be permitted to color fully before harvest. Guatemalan types can be stored firm, at 40 – 50° F. for up to six weeks. Mexican types discolor quickly and require immediate consumption.

Miscellaneous: Leaf and seed extracts have been used for a variety of medical application, including treatment of diarrhea and dysentery and as an antibiotic.


Origin Otto Keup, Anaheim, 1910. Guatemalan. Tree columnar, productive. Fruit very large, to 24 oz., elongated glossy green, seed small, oil 15%. Tenderest of cvs. for coast only. To 32° F. Season July.
Origin James Bacon, Buena Park, 1954. Hybrid. Tree broad, productive. Fruit small to medium, to 12 oz., round-ovoid, smooth green. Flesh only fair, almost colorless,seed cavity molds rapidly. Hardy for Bay Area, Central Valley. To 25° F. Season December.
Origin Orton Englehart, Escondido,1969. Hybrid. Seedling of Reed. Tree open, upright, branching. Fruit medium, to 14 oz., skin green flesh extraordinarily pale,buttery, nearly fiberless. Not alternate bearing. To 30° F. Season April – July.
Origin Bangor (Oroville), 1912. Tree vigorous, open, resists wind. Fruit small, 12 oz., elongated pyriform, waxy green, skin paper-thin. Flesh excellent, oil 21%. Seeds commonly used for rootstocks, resist root rot. Extraordinarily hardy, recovers quickly from freeze, to 22° F. Season October
Origin Atlixco, Mexico, intro. Carl Schmidt, 1911. Hybrid. Tree open, spreading, tall. Fruit large to very large, 16 oz., elongated pyriform, skin dark green with numerous small raised pale spots, waxy bloom, skin thin. Flesh good, oil 18%, seed medium. Formerly standard cv. of California industry. Tends to bear in alternate years, unproductive near coast or in north. To 26° F. Season December.
Origin Albert Rideout, Whittier, 1905. Mexican. Tree tall, spreading, open. Fruit small, to 8 oz., long pyriform, skin paper-thin, pale waxy green. Flesh good, oil 18%. Oldest avocado cv. in California. Quite hardy, for Central Valley floor and far north. To 23° F. Season October.
Origin Riverside, Robert Whitsell, 1982, patented. Seedling of Hass. Tree dwarf, to 14 ft., low vigor. Fruit small, to 8 oz., a Hass look alike, elongated green, flesh good. Most productive of dwarf avocados, best dwarf for outdoor use, also for containers, greenhouse. Not hardy, to 30° F. Season February – October.
Origin Rudolph Hass, La Habra Heights, 1926. Seedling of Lyon. Guatemalan. Tree rather open, not tall. Fruit medium, to 12 oz., pyriform, skin thick, pebbled, coppery purple. Flesh good, oil 19%, seed fairly small. Currently the standard of the industry. To 26° F. Season July.
Origin John Reinecke, San Diego, 1939. Hybrid. Tree upright. Fruit small to medium, to 10 oz., olive green, with long neck, oil 12%. To 26° F. Season June.
Origin George Cellon, Miami, 1919. West Indian. Tree dense, broad, prolific. Fruit round, slightly pyriform, to 20 oz., slightly rough glossy green, oil 12%. Only West Indian type recommended for California, rather hardy, to 28° F. Season April.
Origin R. Lyon, Hollywood, 1908. Central American. Tree columnar, slow growing, difficult to propagate, often scion incompatible. Fruit commonly over 24 oz., dark glossy green, rough, pyriform, oil 21%. High quality. Tender, to 30° F. Season April.
Origin Coolidge, Pasadena, 1910. Mexican. Tree tall and spreading, vigorous. Fruit small, 5 oz., round pyriform, skin paper-thin, purplish black, waxy bloom. Flesh highest quality, seed very large. Hardiest cv. known, seedlings useful as rootstocks in far north. Recovers rapidly from freeze. Defoliated at 20° F, trunk killed at 17° F. Season September.
Mexicola Grande
Seedling selection of Mexicola. Mexican. Tree tall and spreading similar to Mexicola. Fruit 15% – 25% larger than Mexicola and somewhat rounder in shape with better seed/flesh ratio. Skin paper-thin, purple-black. High quality flesh with high oil content. Hardy to about 18° F.
Murrieta Green
Origin Colima, Mexico, intro. by Juan Murrieta, 1910. Hybrid. Tree slow growing, easily trained. Fruit large, to 18 oz., oblate, green, resembling Fuerte. Flesh exceptional, oil 18%. Only cv. readily adaptable to espalier. For coast and intermediate. To 27° F. Season September.
Origin Antigua, Guatemala, intro. by F.W. Popenoe, 1917. Tree dense, columnar. Fruit handsome, large pyriform, to 17 oz., green, skin resembles Fuerte. Flesh exceptionally high quality, oil 16%. Young trees require pinching to force low branching. Tends to bear alternate years. To 27° F. Season July.
Origin John D. Pinkerton, Saticoy, 1972, patented. Guatemalan. Tree dense, productive. Fruit variable in size, 7 to 12 oz., skin thick, pebbled, green. To 30° F. Season November.
Origin Antigua, Guatemala, intro. by E.E. Knight, 1914. Guatemalan. Tree broad. Fruit exceptionally large, to 24 oz., elongated, purple, flesh excellent, oil 13%. Fairly hardy for large cv., worth trying in Bay Area. To 26° F. Season August.
Origin Atlixco, Mexico, intro. by Carl Schmidt, 1911. Mexican. Tree broad, high branching. Fruit beautiful, medium to large, to 18 oz., ovoid, skin thin, lacquered maroon purple. Flesh excellent, oil 20%. Least hardy Mexican type, to 29° F. Season December.
Origin James S. Reed, Carlsbad, 1948. Hybrid. Tree columnar. Fruit large, to 15 oz., round, skin thick, pebbled, green. Flesh good. To 30° F. Season August.
Origin Carlsbad, Sam Thompson, 1944. Hybrid. Tree small. Fruit small to medium, 10 oz., green, resembling Fuerte. Flesh good. For coast, Santa Barbara and Ventura. To 27° F. Season January.
Origin Albert Rideout, Whittier, 1927. Hybrid. Tree low, spreading. Fruit medium, to 14 oz., elongated, otherwise resembles Hass, skin thick, pebbled, purple. Flesh good, oil 25%. For Inland Empire, Bay Area. To 26° F Season August.
Origin E. Bradbury, Bradbury, 1911. Hybrid. Tree spreading. Fruit medium, to 15 oz., round with small neck, tangelo shaped. Lacquered, coppery purple, outstanding flavor, oil 16%. To 27° F. Season April.
Topa Topa
Origin E.S. Thatcher, Ojai, 1912. Mexican. Tree columnar, vigorous. Fruit handsome, elongated pyriform, small to medium, 8 oz., smooth dark purple with white waxy bloom. Skin paper-thin. Flesh rather poor, oil 15%, seed elongated. Seedlings commonly used for rootstocks. Hardy, for far north. To 23° F.
Origin Robert Whitsell, Riverside,1982, patented. Hybrid. Hass seedling. Tree dwarf, to 12 feet, low vigor. Fruit small, 6 oz., elongated Hass look alike. Flesh good. Bears in alternate years. For containers and greenhouse only, not hardy. To 30° F. February to October.
Wurtz (syn. Littlecado)
Origin Roy Wurtz, Encinitas, 1935. Hybrid. Tree prostrate, difficult to train, low vigor. Fruit dark green, medium, to 10 oz. For containers and greenhouse. To 26° F. Season July.
Origin R.L. Ruitt, Fallbrook, 1926. Hybrid. Tree columnar. Fruit small to medium, to 10 oz. elongated smooth green, resembles Fuerte but inferior, has fibers. Hardy for Bay Area, Central Valley. To 25° F. Season November.

Photographer: Roberto Machado Noa/LightRocket via Getty Images REAL ESTATE There Are 5.6 Million Cheap Apartments in America. Not for Long

The Hidden Villa Apartments, a 61-unit complex in Beaverton, Ore., is the kind of property investors love and affordable-housing activists ignore.

Built in 1968, it was acquired recently by an out-of-town developer who plans to tear up the old carpeting and roll in some stainless steel appliances. The idea is to attract the wealthier workers flocking to knowledge industry jobs in the Portland, Ore., metropolitan area and charge higher rents.

Sixty-one cheap apartments gone, 5.6 million to go.

That’s the number of inexpensive market-rate units in the U.S., according to a new tally from CoStar Group, a real estate data and analytics company. And that’s about the number of units of publicly subsidized affordable housing, too.1

Activists and policymakers have invested time and money keeping subsidized units available at below-market rates, while ‘naturally occurring’ affordable housing, as the wonks sometimes call properties like Hidden Villa, get much less attention. Yet there are fewer obstacles to developers seeking to take unsubsidized apartments upmarket—and out of reach for poor renters.

“It has really been a blind spot in affordable housing policy at the local, state, and federal levels,” said Stockton Williams, executive director of the Terwilliger Center for Housing at the Urban Land Institute. “The economics don’t work for the private sector to build this kind of housing, so we’ll have less of it over time unless what’s already built is acquired and preserved.”

One reason for the neglect is that naturally occurring units are harder to track. Ownership is concentrated among regional and local players, who don’t have contracts with government agencies that make subsidized units easy to aggregate at the national and local levels.

While unsubsidized by the government, these units remain affordable to working-class tenants because of when and where and how they were built. Typically, that means older units with low-end finishes. The locations vary, though cheap apartment buildings in central, transit-oriented locations tend to attract investors who specialize in fixing up older units and raising rents.

“When we started out, our model was, let’s buy from the slumlords and create habitable housing,” said Max Sharkansky, managing partner at Trion Properties, a decade-old Los Angeles-based property manager that bought Hidden Villa. The company targets deals where it can raise rents by 25 percent, often more.

“If someone can’t afford it, they can move into something older or more vanilla and pay the lower rent,” Sharkansky said. In the submarkets that his company targets, those kinds of apartments often no longer exist. “Usually the only option is to move out of the neighborhood.”

The CoStar data (PDF) represent the first, best effort to count the stock of naturally occurring affordable housing, Williams said. To compile its research, CoStar used a proprietary ranking system that awards multifamily properties one to five stars, based on quality of design, structural systems, and other factors.2 Two-star properties such as Hidden Villa feature functional aesthetics, below-average finishes, and noticeable wear and tear. Five-star properties are graced by open plans, energy-efficient systems, and expensive materials.

The result of the rankings is a system based on the quality of the real estate asset, not on rent prices or affordability—an approach that gives the world another way of measuring the rampant costs of living in San Francisco.

In the Atlanta metropolitan area, for example, the average asking rent for one- and two-star apartments was just under $800 a month in the second quarter. For similar units in San Francisco, the price was just under $2,600.

That means, based on standard affordability metrics, that a household needs to earn more than $100,000 a year to afford the rent on the bottom third of the city’s apartments.

What most of these cheap apartments have in common is that they’re old. Developers generally aim new projects at the top of the market; as fresh units hit the market, older apartments get less expensive. About 3 million of the units identified by CoStar as naturally occurring were built in the 1960s and 1970s. That makes sense, since the U.S. built 11 million multifamily units in those two decades. We’ve built only 6 million in the last 20 years.

But the old age of cheap market-rate apartments is a double-edged sword for poor renters. Owners of aging apartments that can’t command high rents don’t have a lot of incentive to make improvements, creating a housing stock that becomes less habitable over time. Cheap apartment units in improving neighborhoods, on the other hand, can be attractive targets for value-add investors—who make repairs and increase rents.

Whether you think that’s a bad thing or not, what seems clear is that the slower pace of construction in the last few decades has baked in a future shortage of affordable units. That may augur a time when the largest source of cheap, unsubsidized housing comes from single-family rental homes.

In the meantime, mission-driven real estate investors have made some efforts to preserve market-rate housing, making modest improvements and keeping rent hikes to a minimum. Those efforts are still new, and they are dwarfed by funding to protect subsidized units. Even if those investors can attract more capital, the best they can do with it is stem the tide.

“We have to figure out how to build more housing, whether it’s a single-family house or an apartment building,” said Hans Nordby, managing director at CoStar Portfolio Strategy. “If we don’t, we’re going to risk boiling down the social stew to rich people and the people who serve them lunch.”

Housing summit seeks more YIMBY, less NIMBY

Tuesday’s summit is being staged by the six-county Southern California Association of Governments, or SCAG. It’s goal: To get local city councils – and their reluctant constituents – to become more tolerant of increased development. (Photo by Monica Almeida, The New York Times)

Fear of new development is fueling a housing crisis in Southern California, driving up rents and home prices and causing overcrowded conditions, according to a study prepared for the “California Housing Summit,” taking place Tuesday in Los Angeles.

And the cause, the study says, is the well-intentioned but sometimes misguided goals of preserving neighborhoods, fighting traffic congestion and environmental protection.

Tuesday’s summit is being staged by the six-county Southern California Association of Governments, or SCAG. It’s goal: To get local city councils – and their reluctant constituents – to become more tolerant of increased development.

The region’s affordability crisis is “probably the most important issue that we can tackle in the next few years,” said SCAG Executive Director Hasan Ikhrata.

“The future economic wellbeing of the SCAG areas – especially in Orange County and L.A. County – depends on there being an adequate supply of housing,” he said.

The summit is expected to draw more than 500 local officials, housing advocates, and business leaders.

Sessions will focus on funding for affordable housing, planning policies and challenging “myths” about homebuilding’s impact on existing neighborhoods.


The summit is targeting local elected officials, said Steve PonTell, an Inland Empire affordable housing developer and summit master of ceremonies. The goal, he said, is to “create political will so local leaders can make the tough choices that aren’t necessarily the popular ones.”

Ikhrata said soaring rents and escalating home prices are causing an exodus of young talent from the region in search of more affordable housing out of state.

A 25-year slump in housing development has created a deficit of at least 600,000 homes across SCAG’s six-county area, threatening Southern California’s economic and social well being, the study said.

As a result, housing hasn’t kept up with population growth.

For example, in the 1970’s, California built one new housing unit for every 1.7 people added to the population, the study said. Since 2010, the state added one home for every 2.6 new residents.

Today, 44 percent of Southern California households pay more than 30 percent of their income (that is, more than the amount deemed affordable) in rent and house payments. Sixty-three percent of low income families spend more than half their income on housing.


The lack of housing leads to increased overcrowding, poverty and the social ills that come with it, the report said.

“Ultimately, we’re destroying our neighborhoods by having a shortage in the supply of housing,” PonTell said. “Roads, the water, the police, the schools will deteriorate faster (due to overcrowding). People will be living in conditions that will create hidden costs.”

The study outlined a long list of possible solutions. They include a strategy to set aside increased property taxes derived from development and use that money to build infrastructure and defray other building costs.

Other solutions – many already in effect – include density bonuses, inclusionary zoning and rent control.

Perhaps the most controversial proposal is something the study called “myth busting.”

Citizen opposition to new housing, the study maintains, often stems from emotional fears and misconceptions.

Citizens believe that new housing – particularly apartments and subsidized units for low-income families – will increase traffic congestion, decrease property values and boost crime, the study said.

One neighborhood preservation advocate disagreed, calling the summit’s agenda “a slap in the face of everyday people who live in L.A.”

Instead of dreaming up new plans to increase luxury housing, local cities should preserve existing affordable housing, said Jill Stewart, a moratorium campaign director for the Coalition to Preserve LA.

PonTell argued, however, local opposition to development “is selfish and greed-based and fear-based.

“People are just motivated by their own fear and greed,” he said. “You’ve heard the term NIMBY? So how do we create YIMBYs? Yes in my backyard?”

Contact the writer: 714-796-7734 or jeffcollins@scng.com

GSEs to raise conforming loan limits in 2017?


In the second quarter of 2016, the Federal Housing Finance Agency’s house price index was almost identical to the level of the index in the third quarter of 2007, according to theMortgage Bankers Association.

So why is this so important? Once the HPI reaches pre-crisis levels, Fannie Mae andFreddie Mac can raise the conforming loan limits — the maximum mortgage origination balance the GSEs are permitted to buy. Loans above the limit are known as jumbo loans.

The national conforming loan limit for mortgages that finance single-family one-unit properties increased from $33,000 in the early 1970s to $417,000 for 2006 to 2008, with limits 50% higher for four statutorily-designated high cost areas: Alaska, Hawaii, Guam, and the U.S. Virgin Islands, according to the FHFA.

The FHFA restricted the GSEs from raising the conforming loan limit until prices exceeded pre-crisis levels of one of the three HPIs, the expanded-data HPI. The FHFA defined pre-crisis levels as the level of the expanded-data HPI in the third quarter of 2007.

The MBA’s chart shows three different HPIs produced by the FHFA:

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(Source: MBA, FHFA)

While all three indices are repeat sales indices, they each use different home price data. The all-transactions index and the purchase-only index use home price data from mortgages purchased by the GSEs.

The expanded-data index, as its name would suggest, goes a bit further. This one also incorporates information on home sales financed with mortgages insured by the Federal Housing Administration as well as other home sales transactions observed in deed records.

Although the expanded-data HPI lagged behind the other two since the housing crisis began, it has now reached 2007 levels.

Because of the price levels during the second quarter of this year, the FHFA could raise the conforming loan limit for 2017, the first such increase since 2006.

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