Monday, September 11, 2017

California Housing Crisis

More and more people are being priced out of the California Housing Market Place when it comes to buying homes (downsizing, up-sizing, first time and even renters)  Prices are increasing in all these areas and with the shortage of available homes on the market for sale or for rent it only promises to get worse.

There has been fewer and fewer new home starts based on several things, the down turn in the market in 2006-07 (builders often left sites unfinished, cities putting restrictions on new starts.  ( a lot of restrictions being put into place with land use, when, where, and how many homes, condo's, etc. can be built.  Housing of all types are being effected.

Over 230,000 homes needed to be built per year over a several year period and that was a drastic difference over what was built.  (About 120,000 per year) According to the current demand we need to build about 200,000 per year and that is a far cry from the figure currently being built of about 100,000 per year.

This housing shortage is hurting people at every economic level, but made it very difficult for lower income and first time buyers. There have been more cuts in affordable housing funding which has also contributed to the crisis.  Cost of building has risen drastically as well.  All in all it means less homes on the market, even as many people are leaving the state many more are moving in.  California needs to take action to protect it's housing market and provide more affordable housing for people  needing mid range housing to lower income families.

We can all help by encouraging our cities to take actions that will attract more builders, with more reasonable costs for building.

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