C.A.R. today issued the following statement on a report titled, “California’s High Housing Costs: Causes and Consequences,” released this week by California’s Legislative Analyst’s Office:
“The Legislative Analyst’s Office report on housing is completely on target. California’s high cost of housing is putting the squeeze on the state’s residents and making it difficult to attain the American Dream or just keep a roof over their heads,” said C.A.R. President Chris Kutzkey.
The report found that California’s high housing costs make the state a less attractive place to call home, making it more difficult for companies to hire and retain qualified employees, likely preventing the state’s economy from meeting its full potential. Housing has long been more expensive than most of the rest of the country – about 2 ½ times the average national home price, while California’s average monthly rent, $1,240, is about 50 percent higher than the average U.S. rent, according to the report.
The California Environmental Quality Act is a significant factor in inhibiting developers from increasing the supply of housing and building higher density housing, according to the report. Local governments must conduct a detailed review of the potential environmental effects of new housing construction prior to approving it.
(Source: California Association of REALTORS®)