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Homeownership

Researchers point to the government as source of California’s housing shortage

(REAL ESTATE NEWS) California is in the middle of a housing crisis with ongoing shortages. The Governor has a plan, but many have pointed to the government as the source of the problem with no end in sight.

california

These days, California ranks #2 as the state with the highest cost of living in the United States, second only to Hawaii. The average home price in the The Golden State is over $1 million. Your monthly energy bill will be over $200.  And still, it’s one of the most desirable places to live. Small wonder that people flock to California, because the state ranks worst for doing business thanks to taxes and regulations.

It’s no secret that California has a housing shortage. It’s not even that the housing costs are sky-high. It’s that there simply aren’t enough homes to go around. Gov. Gavin Newsom says he plans to build 3.5 million new homes over the next few years to fix this crisis, but it may take much more to bring housing to the homeless and under-employed.

In a Los Angeles Times Op-Ed, James Broughel and Emily Hamilton suggest that California is overregulated when it comes to housing.

The average state has about 137,000 restrictions in its housing code. California has over 395,000.

Although many of the regulations are necessary to protect the environment and to ensure safety, it can contribute to higher construction costs, which it turn are passed on to consumers.

The California Code of Regulations contains over 21 million words. (Forbes estimates that the US tax code was about 4 million words in 2013). At a reading speed of 300 words per minute, for 40 hours a week, it would take 29 weeks or more to read the thing. And that doesn’t take into account comprehension, which requires a legal degree.

California’s housing shortage is a man-made problem that will take years to undo. One builder in Orange County planned a new community in Santa Clarita that would provide almost 22,000 homes.

The project has been stalled since 1994.

As the project ages, each home being constructed faces new regulations, increasing the cost of the home, making it near impossible for average families to obtain the American Dream.

It’s been suggested that California’s housing shortage is a political choice.

Bureaucrats are choosing to restrict housing by placing regulatory burdens on builders instead of helping the population find affordable housing to be more stable. Families are leaving California to find a more affordable cost of living and housing which will continue to hurt the state.

Dawn Brotherton is a Sr. Staff Writer at The American Genius with an MFA in Creative Writing from the University of Central Oklahoma. She is an experienced business writer with over 10 years of experience in SEO and content creation. Since 2017, she has earned $60K+ in grant writing for a local community center, which assists disadvantaged adults in the area.

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