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Some Points About Our California Housing Crisis

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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