As reflected in the HARI, Housing Affordability Renters Index, the Los Angeles region is the least affordable in the nation at 18%. The home ownership rate is also the lowest at 47.7%, which translates to Los Angeles having a higher percentage of renters than owners. Compare that to the Phoenix area that has a 61.8% ownership.
There’s a lot of discussion about expanding rent control, but that won’t resolve the affordability, or housing supply issues. If anything it makes it worse.
As I’ve conveyed numerous times in the past, it’s a supply and demand issue. We need more housing units, to handle the quantity of population. We have $4.5 billion in the government’s hands presently in Los Angeles to be designated for affordable housing. Just like in the past, very little has been used, except for administration purposes. During my discussions with local city council members, it’s aways been indicated that the voters can vote for more taxes and money to be applied toward the housing the homeless, or for affordable housing, but when it comes down to it… they’re NIBYs (NOT IN MY BACK YARD). They’re having a hard time getting local approval on locating building sites.
There are several bills in the works in Sacramento that will “override” local zoning and planning restrictions, essentially forcing the construction of a higher quantity of units along mass transit routes. We are behind the construction of 3 million housing units in California to keep up with population growth, and replacing older units.
This will be a battle…
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me.
Ron Henderson GRI, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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