Welcome to today’s real estate news roundup! In California, a slowdown in home construction is causing concern as experts warn that limited supply could drive housing prices even higher, exacerbating the state’s affordability crisis. Rising labor and material costs, stringent regulations, and soaring borrowing costs are making it increasingly challenging for developers to turn a profit on new projects. The decline in building permits for new homes nationwide, including a 7% drop in California in 2023, further signals trouble for the housing market. To learn more about this issue, read more.
California’s housing slump spells trouble as prices will rise
In California’s real estate market, a slowdown in home construction is sending ripples of concern through the industry. With fewer homes being built, experts warn that the already sky-high housing prices could skyrocket further due to limited supply, exacerbating the state’s affordability crisis. Developers are facing rising labor and material costs, stringent local regulations, and soaring borrowing costs, making it increasingly difficult to turn a profit on new projects. The decline in building permits for new homes nationwide, including a 7% drop in California in 2023, is signaling a worrying trend for the housing market. Despite recent efforts to streamline the housing approval process, developers remain cautious about uncertain market conditions.
Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again? – Forbes Advisor
As we head into peak home-buying season, signs of life have begun to spring up in the housing market. However, still-high mortgage rates and home prices amid historically low housing stock continue to put homeownership out of reach for many. The National Association of Realtors has agreed to a $418 million settlement that will require changes to broker commissions, potentially upending the buying and selling model. Despite ongoing affordability hurdles, experts forecast an increase in home sales transactions compared to last year. While some areas show signs of growth, elevated mortgage rates and limited supply remain challenges. Read more about the predictions and trends in the housing market for 2024.
California’s controversial ‘builder’s remedy’ housing law could get a makeover
For the last two years, the “builder’s remedy” has been an unruly teenager of California housing laws, allowing developers to build without restrictions in cities and counties that have missed housing development deadlines. However, no projects have broken ground due to legal uncertainties and lack of developer interest. Now, powerful Democratic lawmakers are pushing legislation to clarify and rein in the controversial law. The proposed overhaul includes new perks for developers, textual edits for clarity, and a provision to bypass environmental review and public hearing requirements under certain conditions. The bill would also cap project sizes and prohibit the use of builder’s remedy in industrial zones. Supporters argue that the legislation will provide clarity and accountability while ensuring housing gets built. The bill is scheduled to go before the Assembly’s Housing and Community Development committee in April.
Strengthening our Foundation: The 2024 California YIMBY Agenda – California YIMBY
California YIMBY and its allies have made significant progress in the past seven years towards making California an affordable place to live. This year, their legislative agenda focuses on fine-tuning past victories and setting up bigger wins in the future. The agenda includes reforms to address high housing fees, enable easier construction of condominiums, and ensure that historic preservation efforts do not hinder housing goals. Technical fixes will also be implemented to update existing laws for more effective implementation. The ultimate goal is to build a broader platform for pro-housing progress over the next few years. The success of this agenda relies on the passion and commitment of supporters and members of California YIMBY. Together, they aim to end the housing shortage and create a California for everyone.