Report Finds California Home Ownership Rates At Lowest Since 1940s
A new report shows that the housing crisis is as bad as we think. What is next when the shampoo show comes to an end. It is Wednesday, January 4. The top story on midday edition, it is as bad as it has been in the states history. That is what they say about a draft report on housing affordability in a state. It seems that San Diego is not alone in shortages in increased prices that have been described as a housing crisis. LeeAnn from the Los Angeles time is joining me with the findings on the house report. Welcome to the program. Thank you for having me. This is on renting an opening in the state let's talk about what it says about the states renters. How much of their income do they have to spend on housing? The commonly used is to stick for those who are spending more than they should on housing, is 30% of your income. One third of the renters spend more than half of their income on housing cause. That is extraordinary. It is less you can spend on food in education or anything else. It is a tremendous burden on a significant number of people. Part of the reason the rent is so high on this seems to be because there is not enough houses being built. Absolutely. Were falling behind by 100,000 homes that we should build each year. That is key in coastal areas such as San Diego and the bay area and Los Angeles. That is where the jobs are and that is where people to be. There are too few homes to support people who want to be there. That is what is causing prices to go what. Home ownership rates have gone up. What does that mean? The rate of homeownership is the lowest since the 1940s. That is a little problem. Homeownership is a significant source of wealth for many people in this country. Without having access to the wells, people are fighting further behind in terms of what they can do for themselves and features. This report give any indication why the housing situation in California so bad? We do not build enough houses. That is the primary reason why prices are going up. It is supply and demand. There is a supply and demand outlives the surprise there's the supply, prices go what. It fate -- affects the economy. This was came out from him consulting firm. Roughly 6% of the economy is loss and it could be higher if there were enough houses to accommodate. That is a tremendous burden for individuals and the state. As farce the house and report, is there a post solution? Sure. They run the gamut of what we are talking about in Sacramento. You're making it easier to build so streamlining regulations and cities. Cities make it difficult to build new homes. They force developers through a number of groups that take a long time. Also, there's a lack of funding for low income housing. If you want to build housing that serve people who let make less than the half of the region's income, need public support. There's no permanent source of revenue on the stateside to help build those times. As a result, because of the problems, it is caused by local regulation. There is not enough money at the state level to handle certain low income homes. That is where you are seeing supplies. We spoke with Tony Atkins yesterday about her proposed SP 2 that would use a new fee to generate money for housing. How much of April is a priority -- a priority is the housing 30? Back there was not a major discussion last year. Muster, Governor Brown put forth a proposal to streamline production anti-subsidies for low income housing. I think what you saw the first time in a long time, a large aggressive conversation about what to do about these major problems that we have at the state level. There have been a number of proposals that try to address this in a more comprehensive way I would not be surprised if something happens this year but how big of a deal it is, is appreciated. It does seem from report that state intervention is needed not only to build homes but to ensure that the houses are built where they are needed. There is a ton of research that says the more local control you have, the more local control you have with income segregation's and communities and the less houses that get dealt. There is concerns like traffic or partners but those are concerned contrary to the need for more production. It takes the region to come in and say you have processes to mandate or to decide what is in your community. At the end of the day, you need help. That is where the tension comes in. I will not be surprised if we see a push at the state level for more intervention. The state government or the regional governments, you can say to the cities you can have processes but some are too many. You are restricting the supply of houses. Thank you. Thank you.
A draft report from California's Department of Housing and Community Development found home ownership rates in the state are at their lowest since the 1940s.
The report, California's Housing Future: Challenges and Opportunities, also found that the state has more than its share of the country's homeless population — 22 percent of the country's homeless live in the state while the state makes up only 12 percent of the country's population.
On Wednesday's Midday Edition, Los Angeles Times staff writer Liam Dillon discusses the report findings and recommendations.