Welcome to today’s roundup of news in the Real Estate category. California continues to grapple with a housing crisis, as once working-class towns transform into million-dollar cities. Rising home prices, supply and demand constraints, and limited undeveloped land contribute to this ongoing challenge. In the midst of this crisis, lawmakers and advocates are taking action. California recently passed the Stable Affordable Housing Act, becoming the first state to implement social housing legislation. Additionally, efforts are underway to address wealth concentration, tenant protections, and the impact of construction fees on housing costs. Join us as we explore these important developments and their potential impact on California’s housing market.
California housing crisis turning many working-class towns into ‘million-dollar cities’: Report | Fox Business
A growing list of California cities are facing an ongoing housing crisis, with once working-class towns now seeing median home prices exceeding $1 million. Cities such as Placentia, Orange, Tustin, Bonita, Cerritos, and San Gabriel have experienced substantial jumps in home values, with Bonita and Tustin seeing the most significant growth rates of nearly 12% in the last year. The supply and demand constraints in Southern California, along with limited undeveloped land, contribute to the increasing property prices. California has more million-dollar cities than the next five states combined, with 210 cities having a median home value greater than $1 million. The state added 12 cities to the list in 2024. To learn more about this housing crisis, click here.
Opinion: Wealth worsens California housing crisis; what lawmakers can do
Housing insecurity in the United States has surged due to COVID-19, ongoing inflation, and cost of living increases. The pandemic has shed light on ways to protect people from housing insecurity. California recently passed the Stable Affordable Housing Act, becoming the first state to implement social housing legislation. Senator Nancy Skinner has also introduced a bill to prohibit investment entities from acquiring single-family homes. The author shares their personal experience of struggling with housing affordability in expensive markets and facing eviction. They highlight the consequences of wealth concentration and the influence of private equity investors in the rental market. The article emphasizes the need for tenant protections, such as rent stabilization and just-cause eviction protections, and encourages community involvement and advocacy. To read more about this perspective on the California housing crisis, click here.
Supreme Court ruling could help lower CA housing costs | Opinion
The extremely high cost of construction in California contributes to the state’s housing crisis. While some costs are intrinsic, such as land acquisition and building materials, others are artificial and imposed by state and local governments. These include high-cost unionized construction labor, time-consuming environmental clearances, arbitrary design criteria, and impact fees. The impact fees, in particular, have been escalating sharply and were ruled unconstitutional by the U.S. Supreme Court unless based on actual costs. This ruling could help lower some of the costs that make housing expensive in California. To read more about this perspective on California’s housing costs, click here.
California Legislators Take Aim at Construction Fees to Boost Housing | KQED
Legislators in California are addressing the challenges faced by the housing market by focusing on reducing impact fees. Impact fees are charges imposed by cities to fund construction for schools, road maintenance, and other amenities. The fees can range from $12,000 to $157,000 per unit, posing a significant barrier to housing development. While recent Supreme Court rulings have called for cities to demonstrate the reasonableness of these fees, new bills aim to address issues such as transparency and timing of fee payments. Developers welcome these efforts to reduce construction costs, but they emphasize the need for broader discussions on funding municipal services. To learn more about the ongoing efforts to boost housing in California, click here.