Housing Outlook for the Rest of 2020The average home price in Los Angeles County for the first 5 months in 2020 was $472,565 which is an increase of 13.5% percent compared to the average home
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Housing Crisis Grows Even More Urgent
Housing affordability worsened in 2019. Only 30% of California households are able to afford the median priced home compared to a majority of 57% in the rest of the U.S. As a result, California currently has the third lowest homeownership rate in the nation and the second highest percentage of cost-burdened households where spending is at least 35% of their income on rent.
An average home in California now costs over $600,000, more than double the national average. 53% of Californians and 63% of millennials say they are considering leaving the state over high housing costs. In response, the state has made efforts to bolster California’s housing supply with the government threatening to fine cities up to $600,000 per month for failing to build more homes to meet population needs. In an unprecedented move, the state sued Huntington Beach this year alleging the city was standing in the way of affordable housing needs. Governor Gavin Newsom threatened additional lawsuits at other cities that fail to meet their quotas. Personally, I think this is wrong to take one of the most prestigious cities in the County and expect them to make affordable housing. Why not choose a city with affordable land values?