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CALIFORNIA’S HOUSING SUPPLY CRISIS

Posted on June 6, 2018 by Anthony Vulin in Beverly Hills, Glendale, Hollywood Hills, Market Update, Real Estate, Santa Monica, Silver Lake, Uncategorized, West Hollywood

California’s housing shortage costs the state more than $140billion per year in lost economic output, including lost construction investment as well as foregone consumption of goods and services because Californians spend so much of their income on housing.

(A Tool Kit to Close California’s Housing Gap, McKinsey Global Institute, October2016)

A new housing unit should be built for every 1.5new jobs. In Southern California, a new home was built for every four jobs; in the Bay Area one for every six jobs.

(Orange County Register, November 13, 2016)

Between 2005 and 2015 there were only 21.5 permits for housing units issued in California for every 100 people new to the state.

(Current State of the California Housing Market, Next 10, March 2016)

From 2009 to 2014, California added 544,000 house holds but only 467,000 net housing units. States such as New York have added nearly 80 percent more housing units than California relative to population growth.

(A Tool Kit to Close California’s Housing Gap, McKinsey Global Institute, October 2016)

Workers in California’s coastal communities commute 10 percent further each day than commuters else where, largely because limited housing options exist near major job centers.

(California’s High Housing Costs, Legislative Analyst’s Office, March2016)

“California’s housing supply crisis has put the squeeze on young people and middle-class families. Our teachers, nurses, firefighters and police officers should be able to live in the communities they serve. To resolve the shortage, we must increase the supply of housing for working-class families to buy and rent.”

Joel Singer Chief Executive Officer

California Association of REALTORS®

 

CALIFORNIA RANKS LAST IN THE NATION IN HOUSING AFFORDABILITY

Each year Californians pay $50 billion more for housing than they are able to afford.

(A Tool Kit to Close California’s Housing Gap, McKinsey Global Institute, October 2016)

An average California home costs $440,000, a bout two-and-a-half times the average national home price ($180,000).

(California’s High Housing Costs, Legislative Analyst’s Office, March2016)

California’s average monthly rent is about $1,240 50 percent higher than the rest of the country ($840 per month).

(California’s High Housing Costs, Legislative Analyst’s Office, March 2016)

California’s lowest income renters spend a median of 68% of income on rent, leaving them with little money for other basic necessities, including food, healthcare and transportation.

(Confronting California’s Rent and Poverty Crisis: A Call for State Reinvestment in Affordable Homes, California Housing Partnership Corporation, April2016)

Every county in California has an affordable housing shortfall.

(Confronting California’s Rent and Poverty Crisis: A Call for State Reinvestment in Affordable Homes, California Housing Partnership Corporation, April2016)

California’s high housing costs make California a less attractive place to call home, making it more difficult for companies to hire and retain qualified employees, likely  preventing the state’s economy from meeting its full potential.

(California’s High Housing Costs, Legislative Analyst’s Office, March 2016)

RENT CONTROL MAKES THINGS WORSE

Twenty-seven states have already out lawed rent control because of its harmful  consequences. While it may sound good, rent control reduces access to quality housing and increases rents for most of California’s middle-class workforce.

(Rent Controls, A White Paper Report, National Association of REALTORS®, October 2016)

Rent control increases costs for those entering the market, for non-rent control units and to tax payers for governments to implement the policies.

(Rent Controls, A White Paper Report, National Association of REALTORS®, October 2016)

Rent control decreases property values, tax revenues, construction and construction jobs, the supply of affordable housing and the quality of homes.

(Rent Controls, A White Paper Report, National Association of REALTORS®, October 2016)

Rent control disproportionally affects low income families. It results in a reduction in the quality and supply of available housing.

(The High Cost of Rent Control, National Multifamily Housing Council)

FIX THE HOUSING CRISIS, THE SOLUTION IS SUPPLY

California decision makers must act immediately to reverse this slide and put people back on track to afford live and work in the same community. The solution is simple – we need more housing, and we need it now.

*California Coalition to Support Housing is an initiative of the California Association of REALTORS® to support policies that help  Californians live and work in the same community. For more information, contact Rick Laezman at richardl@car.org.


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