gmhTODAY 11 gmhToday Nov Dec 2016 - Page 24

The State of Housing Affordability C.A.R. Magazine, Roger Cruzen T he headlines are impossible to ignore. “California’s Affordable Housing Crisis Spreads to the Middle Class,” from the San Francisco Chronicle. “California’s Housing Costs Hurt Economy, Increase Poverty, Report Says,” The Wall Street Journal reported. “California’s Housing Affordability Crisis Isn’t Going Away,” warned an article from HousingWire. Beneath the headlines and in dozens of academic studies reside the details of an unprecedented housing affordability crisis that threatens the well-being of millions of hard-working Californians and the long- term health of the state’s economy. This month, California Real Estate explores the current state of the crisis, some of the factors that have caused it, the growing impact on the middle class, and how California Realtors® are getting involved in solutions to the problem. Factors Behind the Crisis Housing affordability is a national problem that exists to some degree in almost every community. Among the factors driving the crisis in California: Top Producers Gilroy Office, 2015 Marta Dinsmore, Realtor GRI Intero Real Estate Services 408.840.7420 DRE #01352339 Sean Dinsmore, Realtor Intero Real Estate Services 408.840.7327 DRE #01966405 24 • Inadequate supply: For starters, the supply of homes available to buy or rent doesn’t come close to keeping up with the housing needs of nearly 40 million people. Although California expects to add 330,000 residents a year through 2020, only 44,145 single-family and 52,932 multi-family building permits were issued in 2015, according to the California Department of Housing and Community Development. Another 100,000 units would be needed on top of that just to keep up with this year’s need, let RRWf"FRVG&VG0bFW6G2bW2FBvW&V( B'V@GW&rFRw&VB&V6W76( "&6rR&6W2B&VF67G36Ɩf&( 2vr6'FvRbW6pfVF'2W6VBR&6W2&6F&R&V6W76WfV2FN( 2vBWw2f VvW'2'WBB6V6f"vVB&PV'WW'2vFVFR&6W26R6FW2fW""V"C֖ƖFV6ЦW'2f'7B&W7FW'2ff6Rv&W'2@t$( "$t( "4%DdT$U"DT4T$U"#`FW'2v6R'2&R&WV&VBFVW6VGgV7Fr&R&6VBWB`FR&WB( "vvr6W3gFW"Vr@CcCS#r6Ɩf&( 2VFআW6VB6RfVf"ffR66V7WFfPV'2&Vf&R&V&VFr#2@#BvVB&V6VBCcÓ3266&BЦrFR26V7W2'W&VRfwW&W2FVv6Ɩf&( 2VF6P2&FVǒC&RFFPFVFG2VFR&6P2GvBֆbFW2vW"FFP6&&RFfwW&R( "&3FR&W'GF&FV2ЧF2ff&FVB's( 2&2&PF66W&vr&'&VGЦW7FW'2g&Fv6rBFRvVFWFW'v6R֖vB&RrF6PW2f&RFvVW&Ff֖ƖW2F2G&VB26G&'WFVB6vf6FǒFFR7FF^( 2fVF'6'FvR( "FRv67BbWr67G'V7Fv&V( BFWfVW'2'VFrff&F&RW06Ɩf&( 267FWG&ƗF&V2vW&RFR&Gb'2&R6FVC&V6W6RWG&6Ɩf&B&6W2&PGvFfW"FW2vW"FFW&RV6RЧvW&R&"2#W&6VB&R67Fǒ@FWfVW'2fV"FRVvBFW"67G2`&6rvW"FV6G'WBvW"&6V@FWfVVBFBFV2bFW6G2`F'2FWfVVBBFW"fVW2FP67Bb6Ɩf&Vf&VFVƗG7B4U&WfWw2B7V'6WVV@ƗFvFBff&F&RFWfVVG07VFFVǒF( BV6WB( "w&vr6FFWw&VRF@&Rff&F&RW6r2VVFVB'W@6VvW'2&WFVǒ6RvW FV6GfFWfVVG2FWfV FBG&ff2"ffV7BFRVf&VBVV7FVBff62VvRgFV&P&RFW&W7FVB6W&6&V7G0FBGG&7BF&WfVVW2vFWB&WV"ЦrfW7FVG2662BFW g&7G'V7GW&R67G2fWvW"V'WW'2&R&VFW'0FW6RBFW"f7F'2fR6&VBF7&VFRW6rff&F&ƗG( G&w&V6( Ч6BVfW'6Gb6WFW&6Ɩf&( 0FvVזW'2v2w&GFVWFV6fVǐ&WBFR7&62FRw&VB&V6W76P6BFV6FVBFRV'VFrGW7G'vևFF6