"California faces both short and long term housing challenges. In the aftermath of the housing bubble, foreclosures and steep losses in construction jobs loom large. And despite falling prices, housing is still expensive and the market is tight." These are the results of a report released by the Public Policy Institute of California (PPIC). Despite falling far below their peak, PPIC researchers clearly state that housing prices remain unaffordable to most Californians as well as to many businesses in the state, rents are high and rising, and foreclosures remain high while new construction remains low.
The myth that falling prices make housing more affordable is thin - housing in the parts of California where most people live remain expensive by any measure and rents have actually risen during the housing crisis.
According to PPIC, finding new ways to support affordable housing and tackling regulations and fees that contribute to high prices can improve California's livability and economic performance. Looking ahead, California policy makers need to best utilize federal assistance programs to help struggling homeowners facing foreclosure, tackle regulations, rules, and fees that contribute to high housing prices, and establish new funding mechanisms that can support affordable housing construction.
Please note, SCANPH has been in support of a permanent source of funding (PSF), such as SB 500 introduced by Senator Steinberg, that would support affordable housing construction.
A copy of the report is at this link.