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The Golden State Faces a Massive Shortage of Residential Real Estate. So just why Aren’t Builders Building?

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California has a housing crisis.

This probably does sound that is n’t news because of the recent publicity about disputes over homelessness, rapidly rising rents, and gentrification—and the flurry of policy proposals for everything from rent control to fees on commercial construction and property sales used to aid affordable housing programs. Unfortunately, the conversation about housing is essentially disconnected through the reality of the problem, its causes, and potential fixes.

Debate about the housing crisis typically revolves around low-income households, and understandably so. The rule of thumb is the fact that people shouldn’t save money than 30 % of their income on housing. Meeting such a standard is almost impossible for some families that are low-income. Significantly more than 90 percent of California families earning not as much as $35,000 per spend more than 30 percent of their income on housing year. But that isn’t new; that percentage happens to be stubbornly high for years. Nor is this an exclusively californian figure that is problem—the comparable the united states of america overall is 83 percent.

The crisis for families living at or near to the poverty line absolutely deserves attention. But what is also disturbing about current trends is the fact that the crisis has become spreading to households that are middle-income families earning between $35,000 and $75,000 per year.

In 2006, 38 percent of middle-class households in California used more than 30 percent of these income to pay for rent. Today, that figure is finished 53 percent. The national figure, as a spot of comparison, is 31 percent. Read more