Monday, July 03, 2017

California lawmakers have tried for 50 years to fix the state's housing crisis. Here's why they've failed

The law, passed in 1967, is the state’s primary tool to encourage housing development and address a statewide shortage of homes that drives California’s affordability problems.

“The system is so broken,” Wiener said. “It gives the public a false sense that a step has been taken toward having more housing when in fact it’s just an illusion.”

In addition, state officials don’t know if cities and counties have met their housing goals. Local governments are supposed to give the state information on home building each year, but many don’t. As a result, there is no reliable measure of how many houses are being built in California for low-, middle- and upper-income residents.

California’s housing affordability troubles have contributed to the state’s poverty rate, which is the highest in the nation. It also has burdened millions with high rents and, according to a recent study by the McKinsey Global Institute, created a more than $100-billion annual drag on the state economy by lowering disposable incomes and limiting construction jobs.

Ben Metcalf, the state’s top housing official, has said the affordability problems are as bad as they’ve ever been in California’s history. And the state is expected to add an additional 6.5 million people over the next two decades.

The primary driver of the affordability problem is a lack of home building. Developers in California need to roughly double the 100,000 homes they build each year to stabilize housing costs, according to the McKinsey studyand reports from the state Department of Housing and Community Development and nonpartisan Legislative Analyst’s Office. - More, latimes

California lawmakers have tried for 50 years to fix the state's housing crisis. Here's why they've failed


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