Reasons why we don't build enough housing in California
Community resistance
Water restrictions and lack of water to support additional population
Commercial development brings in more tax revenue than residential
Project reviews and CEQA delays discourage developers
What are the obstacles to housing in California?
Supply and demand create inflated prices and income doesn't have the chance to catch up
Mortgage rates are low but buyers can't afford to pay the inflated housing prices
You need a bigger down payment to qualify
It's hard to save that kind of cash
Tax reform is changing
Here are the Minimum Annual Income Needed to Buy During Affordability Peak & Now. As you can see, compared to the US, things have changed considerably in the past 7 years :
2 Qtr 2012 2 Qtr 2019 % Change
CA Single Family Home $56,320 $122,920 118.3%
CA Condo/Town House $44,440 $95,960 115.9%
SF Bay Area $90,370 $97,970 119.1%
U.S. $32,000 $56,480 76.5%
Source: Realtor Magazine
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