Welcome to today’s roundup of news in the real estate market! In California, a study by Zillow reveals that building new homes has not made housing more affordable, with newly built houses being larger and pricier compared to older homes. Meanwhile, community land trusts in California have tripled in number since 2014, offering a cost-effective solution to preserving affordable housing and stabilizing communities at risk of gentrification. The price of framing lumber has experienced a recent increase, impacting the overall cost of new homes. Additionally, a former basketball arena site in Sacramento is set to be transformed into a master-planned community featuring 2,500 homes. Lastly, the state’s Department of Education is encouraging districts to venture into housing development to address the outflow of teachers from schools. To learn more about these stories, click on the respective links above.
New Homes Don’t Cure Affordability in California
A study by Zillow has found that building new homes in California and other areas has not made housing more affordable. In fact, newly built houses are larger and pricier compared to older homes on the market. The study compared the sales of new and existing homes in 46 metropolitan areas and found that new homes were typically 40% larger and 80% more expensive. In California, buyers paid $1.14 million for new homes compared to $935,000 for existing ones. The affordability gap was especially pronounced in cities like San Jose, where a typical newly built home cost $2.87 million, 79% more expensive than a typical existing home. While new housing supply can help with inventory imbalances, it takes time for affordability improvements to trickle down. To learn more about this issue, click here.
Helping California tenants stay put — community land trusts triple- CalMatters
Community land trusts in California have seen significant growth, tripling in number since 2014. These non-profit organizations purchase land and provide affordable housing options to low-income residents by selling or renting the buildings on the land. Community land trusts offer a cost-effective solution to preserving existing affordable housing and stabilizing communities at risk of gentrification and displacement. They have gained traction in diverse communities, including indigenous tribes, immigrant neighborhoods, and formerly-affordable inland cities. By giving control of buildings to the community and removing them from the speculative market, community land trusts ensure long-term affordability and enable tenants to become homeowners. The California Community Land Trust Network represents 50 established and emerging trusts across the state, with new ones emerging in working-class Black and brown communities. To learn more about the impact of community land trusts in California, click here.
Framing Lumber Prices | NAHB
The price of framing lumber has experienced a recent increase, marking the third consecutive weekly rise. Softwood lumber prices have been volatile due to factors such as increased demand, rising tariffs, supply-chain bottlenecks, and insufficient domestic production. The National Association of Home Builders (NAHB) closely monitors lumber prices and provides insights into the U.S. framing lumber market. Softwood lumber, plywood, OSB, and other wood products are crucial components of new homes, impacting their overall cost. Changes in lumber prices directly affect the price of new homes, along with rising construction worker wages and higher interest rates. NAHB advocates for actions to address high lumber prices and ease supply-chain challenges. To learn more about framing lumber prices and NAHB’s efforts, click here.
2,500 homes slated for former basketball arena site in Sacramento, California | Smart Cities Dive
A former basketball arena site in Sacramento, California is set to be transformed into a master-planned community featuring 2,500 homes. The city has established an enhanced infrastructure financing district to provide financing for the development through increased property taxes on the site. Infrastructure development is expected to begin in 2025, with residential lots becoming available in the second quarter of 2026. The project will also include a medical campus, a public school, parkland, and retail and commercial space. This development is part of a larger trend of multifamily projects being built near sports arenas across the U.S. To learn more about this project, click here.
The Plan to Build a California City from Scratch Has Taken a Pause
Plans to build a new city from scratch in California have been put on hold. The proposed development, known as Quay Valley, aimed to create a sustainable and self-sufficient community. However, due to various challenges, including financing and environmental concerns, the project has been paused. The developers are now reassessing their plans and exploring alternative options. To learn more about the pause in building a new California city, click here.
California Schools Keep Losing Teachers. The State Wants to Help Build Homes for Them | KQED
In an effort to address the outflow of teachers from schools across California, the state’s Department of Education is encouraging districts to venture into housing development. Superintendent Tony Thurmond has announced an initiative to establish the department as a resource for districts looking to build homes for teachers on their property. With the state facing a housing affordability crisis and a shortage of 2.5 million homes, this strategy aims to retain the teaching workforce and make housing more affordable for educators. School districts in California own over 151,000 acres of property, providing opportunities for housing development. Despite challenges, including opposition and lack of knowledge among districts, efforts are being made to accelerate housing projects for educators. The initiative includes creating a blueprint for districts and exploring potential legislation to support housing development. To learn more about California’s plan to build homes for teachers, click here.