Another great article by the LA Times.
California has gotten incredibly expensive and very unaffordable.
According to the USC 2018 Casden Multifamily Forecast, rents are expected to grow 6% from $2,267 per month to $2,373 by 2019.
To put that in perspective, those who rent and earn the median income for the county (average household income is $69,300 per year or $5,775 per month) on an after-tax basis the renter will be putting almost half towards renting a median-priced unit.
Things get a lot worse if you were in the 25th percentile of the population, is individuals are putting almost 60% of their salaries towards their living expenses.
This is extremely grim as Los Angeles is claiming the prize for being the epicenter of the worst housing shortage in its history.
To make matters worse, adding additional regulation (I.e. repealing Proposition 10) will only make housing less available and less affordable.
This added measure of regulation will do nothing towards reducing rents (which is solved by adding more supply to stave off demand) and it does ZERO for addressing homelessness according to studies done at UC Berkeley.
Adding additional regulations to builders will disincentive the development of new construction.
You don’t fix supply problems by adding more barriers.
Economist has conducted a number of studies in the recent years and found that not only is the state missing out on a lot of economic productivity, but the lack of supply we have in the state is also causing the most vulnerable among us to move.
It’s scary to think how misinformed the general public is about the unintended domino effect that could come from this repeal.
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