Welcome to today’s Real Estate news roundup! In California, Accessory Dwelling Units (ADUs) are gaining popularity as a solution to the state’s housing crisis. A recent study revealed that ADUs accounted for 20% of new home construction in 2023, offering an alternative for homeowners and investors amidst soaring home prices. Meanwhile, experts predict that although the housing market will improve, significant improvements in affordability are unlikely in the short term. UC Santa Cruz is also making strides by beginning construction on a new child care center and student housing, reflecting their commitment to meeting the needs of their community. Lastly, while a housing boom in the US has added millions of housing units, more homes, especially affordable ones, are still needed to meet demand. Explore these stories and gain valuable insights into the current state of the real estate market.
ADUs Accounted For 20% Of California’s New Home Construction In 2023
An increasing number of Californians are turning to Accessory Dwelling Units (ADUs) as a solution to the state’s housing crisis. A recent study by the California Department of Finance revealed that ADUs made up 20% of new home construction in 2023, doubling from the previous year. With soaring home prices and limited inventory, ADUs provide an alternative for homeowners and investors.
California’s high median home price of $900,000 has made it difficult for many to afford homes, especially public servants like teachers and first responders. The popularity of ADUs highlights the need for innovative housing solutions. However, the restrictive zoning codes implemented in the past have hindered urban density and contributed to the housing shortage.
Recent legislation, such as Assembly Bill 68 and Assembly Bill 881, has helped streamline the ADU approval process and remove certain restrictions, allowing more property owners to build ADUs. While ADUs have brought additional housing units to the market, they primarily benefit landowners and their relatives, limiting broader affordability.
Despite their limitations, ADUs offer a means of generating passive income for California homeowners and real estate investors. As the state continues to grapple with its housing crisis, building affordable housing units remains the ultimate solution. To learn more about ADUs and their impact on California’s housing market, click here.
Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again? – Forbes Advisor
The spring home-buying season has presented challenges for home shoppers due to stagnant home sale activity, rising mortgage rates, and soaring home prices. While more resale inventory entering the market offers some relief, experts believe momentum will only return when mortgage rates drop to make homes more affordable. However, the timeline for rate cuts remains uncertain, and high inflation further delays the Federal Reserve from taking action. Despite the hurdles, experts maintain that the housing market will improve, but significant improvements in affordability are unlikely in the short term. To learn more about the housing market predictions for 2024, click here.
UC Santa Cruz to begin construction on new child care center, student housing
UC Santa Cruz is embarking on an exciting project to construct a new child care center and student housing. The child care center will provide critical services for faculty, staff, and students, while the family student housing community will accommodate 120 students and their families. This project aligns with the campus’s goal to expand student housing and enhance child care support. The anticipated completion of the child care center and family student housing is late 2025, with plans for further expansion in the future. This initiative reflects UC Santa Cruz’s commitment to meeting the needs of its community and providing a supportive environment for students and families.
ADUs Accounted For 20% Of California’s New Home Construction In 2023
The popularity of Accessory Dwelling Units (ADUs) has surged in California as citizens and legislators seek alternative housing solutions amidst rising median home prices. A California Department of Finance study reveals that ADUs made up 20% of new home construction in 2023, doubling from the previous year. With the median home price reaching $900,000, ADUs provide a much-needed solution to the state’s affordability crisis and lack of inventory. Restrictive zoning codes enacted in the past now facilitate ADU construction, and legislative changes have further accelerated their growth. While ADUs benefit homeowners and their families, they do little to alleviate the broader affordability crisis. California’s next challenge is to build thousands of affordable housing units to address the housing crisis effectively. Read on to learn more about the ADU revolution in California.
Housing boom in most of the US could ease shortage, but cost is still a problem
A housing boom in the United States has resulted in the addition of almost 5 million housing units since 2020, with the majority being single-family homes. This surge in construction offers hope for easing the housing shortage in many parts of the country. However, experts caution that more homes, especially single-family homes, need to be built to meet the demand. High interest rates continue to pose challenges for potential homebuyers. While the housing supply has increased, it still falls short of the demand, particularly for affordable and available homes. Read on to explore the details of the housing boom and its impact on the housing shortage.