California Flunks Housing Affordability
- Realtor.com has assigned California an F grade for its inadequate measures towards providing affordable housing for its inhabitants.
- California was placed at number 47 when compared among all 51 states and territories (which includes Washington D.C.).
- Expensive housing, poor affordability, and a shortage of new building projects remain major issues for the state.
SAN FRANCISCO - California is struggling with attempts to construct and supply affordable homes for its inhabitants.
According to a report from Realtor.com , ranking the state 47 out of 51 states (including Washington D.C.) in terms of housing affordability nationwide.
Expensive housing, reduced purchasing power, and insufficient new building projects remain major issues confronting California as well as numerous other states.
The website established its rankings according to how affordable housing was within a state and its capability to address upcoming supply issues via new building projects.
The measure for affordability utilized Realtor.com statistics which analyze financial viability across various income levels and also considered the proportion of average earnings allocated towards purchasing a typical priced house. On the construction front, metrics included analysis based on building permits relative to population growth as well as comparing costs associated with newly constructed properties against those already established.
What they're sayingThe sole genuine answer to tackling housing affordability lies in constructing additional residences,” stated Damian Eales, CEO of Realtor.com. “While some states have made advancements, far too many remain trapped in an unending loop characterized by escalating house prices coupled with insufficient supply. This report aims to illuminate such discrepancies. What’s required now are decisive measures, and we strongly encourage federal, state, and local authorities to rise to the occasion and act promptly. The moment has come to disrupt this pattern and initiate construction efforts immediately so as to render homeownership attainable for a greater number of Americans.”
States with more stringent zoning and land use rules — like California, New York, and Massachusetts — garnered all the D's and F's on the site’s ranking. Actually, scores lower than D were exclusively assigned to states in the Western and Northeastern regions.
On the contrary, Southern and Midwestern states like Iowa and Texas appeared significantly higher on the affordability ranking for housing. The website attributed this to extensive availability of land and comparatively lower asking prices.
According to Realtor.com, no state managed to achieve an A+ rating, highlighting just how much work remains to be done before achieving true affordability in homeownership.
Realtor.com data
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