Sep 25 2017 38376 1

Dated: September 25 2017

Views: 146

  • Home Affordability Continues To Get Worse

All 58 of California’s counties have lower housing affordability than the rest of the nation.  People are facing challenges even in our most affordable areas!

We also face policy challenges that suppress housing turnover beyond our structural underbuilding.  Because of the high cost of housing, Californians disproportionately face potential capital gains on the sale of their home compared with the rest of the nation.  In addition, California’s property tax system also inadvertently creates a financial incentive for a homeowner to stay in their home.  National turnover rates are down as well suggesting that people also just don’t appear to want to move in general!  Housing turnover is currently about half of what it has averaged historically.

The problem largely stems from the state’s inability to build housing on a scale anywhere even close to keep up with its population or economic growth.  The problems didn’t spring up over-night and are the result of decades worth of structural issues and policy incentives.  There are some actions that can be taken now to begin resolving this problem.

First, California needs to begin to remove state and local barriers to development which include reforming California’s Environmental Quality Act at the state level and loosening standards permitting zoning approval of new developments.  Second, California needs to address public opinion as it relates to new housing in their areas.  Many established areas are against affordable housing development and take on the “Not in My Back Yard” mentality preventing younger or less affluent residents in their neighborhood.  This could have a reverse effect on the value of their own properties.

Other solutions include developing more creative and innovative financing solutions for populations who forgo the use of banks, have no formal credit history or operated a business as independent contractors and sole proprietors without formal employment histories but who may still be good credit risks.  Regardless of what policy changes get implemented in Sacramento, if local elected officials are going to pay a price at the ballot box for approving new developments, they will have little incentive to support housing.

To find out if you qualify for a home or to put your home on the market, call Jack Lees at

818 262-0924 or go to http://www.realestatejack.com.

Latest Blog Posts

Jul 2 2021 38376 2

House flipping hits lowest level since 2000Only 2.7% of all home sales in the first quarter of 2021 were flips — or one in 37 transactions, the lowest level since 2000.Per a report fromATTOM, a

Read More

Jul 2 2021 38376 1

Top 10 Issues Affecting Real Estate in 2021Remote work and mobility are expected to have the most significant impact on real estate over the next year, according to The Counselors of Real’

Read More

Jun 6 2021 38376 2

7 Ways to Get That Downpayment:  Watch my video HEREBuying a home has always been a dream.  If you’re a first time home buyer, an FHA loan may be your best bet only having

Read More

Jun 6 2021 38376 1

10 Mistakes Homeowners are making Around the House1. Using Traditional Light bulbsIf you still have incandescent light bulbs in your home, you could be throwing a lot of money away every month on

Read More