HOW EXPENSIVE IS HOUSING IN CALIFORNIA?

  1. Average price of a house in CA is $440,000 compared with the national average of $180,000.
  2. Monthly payments on the average house is $2,314
  3. You need to earn $92,500 per year to pay for an average house.
  4. 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?

  1. Businesses struggle to hire qualified employees
  2. Fewer people live in productive cities
  3. Housing costs discourage people coming to CA
  4. 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
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