California Housing Issue Spreads

Housing

California is the most-populated state in the United States. It also has a very strong economy, a lot of beautiful landscape, and plenty of things for people to do. Due to these factors, and the warm weather, California is often in high demand with people that are looking for a new place to live. For those that live in California, one of the downsides of living in the state are the very high housing prices in some markets. Much of this has been attributed to the fact that there is an overall shortage of housing in the state (http://www.sfchronicle.com/opinion/article/California-s-housing-crisis-i...).

Another reason why housing in California is limited is because of regulations and government controls. For the past few decades the state has done its best to protect the environment. While this has been great for some reasons, it has placed a huge limit on new housing stock. Furthermore, developers that are approved for the use of new land often try to take advantage of tax benefits that are provided to those that build retail or industrial properties.

The epidemic of a housing shortage in areas of California has been going on for decades. Many believe that another reason for the housing shortage is the topography of the land. California has a lot of hills and waterways, which limits the amount of space. Furthermore, the cost of land precludes new homebuilders from starting new communities. Overall, it is believed that this housing shortage costs the local state economy more than $140 billion on an annual basis.

While the housing crises used to be limited to just California, it now appears to be running into other states in the area. Some other areas in the west coast that are having similar problems are Portland, Seattle, and even areas of Utah and Denver. One of the more interesting facts about the Utah housing market is that it has always had a lower amount of housing units than areas of California. While Utah has less housing units available per person, the average family size in Utah is considerably higher than that in California and other areas of the country.

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