Legislative Analyst Office Report: California’s High Housing Costs – Causes and Concequences
Click the link below to review the 2015 Legislative Analyst Office Report on California’s High Housing Costs – Causes and Consequences
From the report:
Living in decent, affordable, and reasonably located housing is one of the most important determinants of well-being for every Californian. More than just basic shelter, housing affects our lives in other important ways, determining our access to work, education, recreation, and shopping. The cost and availability of housing also matters for the state’s economy, affecting the ability of businesses and other employers to hire and retain qualified workers and influencing their decisions about whether to locate, expand, or remain in California.
Unfortunately, housing in California is extremely expensive. Many households struggle to find housing that is affordable and meets their needs. Amid this challenge, many households make serious trade-offs in order to live here. Because of the important role housing plays in the lives of Californians, the state’s high housing costs are a major ongoing concern for state and local policy makers.
The purpose of this report is to provide the Legislature an overview of the state’s complex and expensive housing markets, encompassing both single-family homes and multi-family apartments. We pay particular attention to identifying what has caused housing prices to increase so quickly in recent decades, and provide information to assist the Legislature in making decisions that will affect the future performance of the state’s housing markets. The report covers four main questions:
• How expensive is housing in California?
• What has caused housing prices to increase so quickly over the past several decades and what would it take to moderate this trend?
• What are the consequences of California’s high housing costs on the state’s households and the economy generally?
• What steps should the Legislature take in the near term as it considers how to address
the state’s high housing costs?
Read the report here: http://www.lao.ca.gov/reports/2015/finance/housing-costs/housing-costs.pdf