HOW EXPENSIVE IS HOUSING IN CALIFORNIA?
- Average price of a house in CA is $440,000 compared with the national average of $180,000.
- Monthly payments on the average house is $2,314
- You need to earn $92,500 per year to pay for an average house.
- In the Coachella valley, average price is $160,000 with payments of $889 you need an income of $52,000 per year.
WHAT’S THE PROBLEM?
- Not enough houses
- The banks won’t loan money
- Payments are too high
- CEQA law is a barrier to building
- Building costs are too high
- Because interest rates are low, investors don’t invest.
WHAT ARE THE CONSEQUENCES FOR CALIFORNIANS?
- Crowding – 4 out of 10 Californians live with other families
- Commuting from 30 minutes to 1 ½ hours to work
- Low home ownership – 1 of 5 who used to buy will not
- Lower household formation – fewer families; fewer kids
- Bigger part of paycheck goes to housing costs
- Student Loan debt prevents young marrieds from buying
HOW DO HOUSING SHORTAGES & COSTS AFFECT CALIFORNIA’S ECONOMY?
- Businesses struggle to hire qualified employees
- Fewer people live in productive cities
- Housing costs discourage people coming to CA
- Housing costs/shortages are holding back the economy
WHAT CAN BE DONE?
- Private sector must build houses
- We must change public policy:
- CEQA must be reined in
- Increase interest rates
- Restrict banks to banking
- Start rebuilding affordable housing
- Build 90,000 more new houses per year
- Forgive student debt