Homes in Southern California continue to soar
Homes in southern California are at a record high and it doesn't show that the buying market is slowing down either.
Based on the article from National Mortgage Report, prices for homes have been on the rise for the more than five years. This is because of the growing economy, mortgage being lower than ever and a shortage of homes for sale.
As hard as it may sound, with the rise of homes, it is helping many homeowners recover from the housing burst, but it also raise concern with the affordability in California. “In 2015, 32% of homeowners pay housing costs deemed unaffordable” Harvard University's Joint Center for Housing Students.
Another group taking a hit, renters. Analysis shows that more than half are paying 30% over their income in housing costs.
California has hit a crisis level because of the spike in homes, and it primarily has to do with the misunderstanding of the supply and demand, according to National Mortgage News. For the past ten years, developers in California have failed to build enough homes for people who live and/or want to live here.
Promises made in Sacramento from Gov. Jerry Brown and legislative leaders have said that they will prioritize the state's housing crisis when they return this month from a month long break. Legislative leaders have proposed a bill in hopes of raising money for subsidized housing to make it easier for developers to build all kinds of housing. No, this bill won’t be easy to pass, and it doesn't help that business friendly democrats are hesitant to ask Californians to pay more to subsidize housing especially after voting to increase gas tax and to reauthorize the state’s cap and trade program earlier this year,