Welcome to today’s roundup of news in the Real Estate category. In our first story, Forbes Advisor explores the predictions for the housing market in 2024, discussing the challenges posed by rising mortgage rates and soaring home prices, as well as the encouraging signs of a gradual increase in housing inventory and slowing price growth. Yahoo Finance highlights the significant cost differences between building houses in California and Texas, shedding light on the factors contributing to California’s higher prices. The Daily News examines the impact of population decline and increased housing construction on the cost of living in California, revealing the persistent challenges of affordability despite the growth in housing stock. Lastly, HousingWire reports on the expansion of accessory dwelling unit (ADU) options in California, providing more affordable and environmentally friendly housing solutions to address the state’s affordable housing crisis. Explore these articles to gain insights into the current state of the housing market and its implications.
Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again? – Forbes Advisor
Despite the challenges posed by surging mortgage rates and soaring home prices, experts predict a gradual build in housing inventory and slowing home price growth in 2024. While affordability remains a concern, there are encouraging signs ahead. However, the market is highly personal, and experts advise buyers to focus on finding a home that meets their needs and is within their financial means. To learn more about the housing market predictions for 2024, read the full article on Forbes Advisor.
Costs $500k more to build house in California than Texas
Building a new home in California is significantly more expensive compared to Texas due to various factors. California’s lengthy and costly approval process, exorbitant development fees, and restrictions on where homebuilders can construct contribute to higher prices. In contrast, Texas and Florida have more efficient permitting processes and facilitate home construction, resulting in more affordable housing options. The housing shortage in California has led to home prices that are 2.4 times higher than in Texas and 2.2 times higher than in Florida. To learn more about the cost differences between building houses in California and Texas, read the full article on Yahoo Finance.
With fewer Californians and more construction, where are the housing bargains? – Daily News
Despite a decrease in California’s population and an increase in housing construction, the cost of living remains high in the state. While the number of residents declined by 0.9% in 2021, the housing stock grew by 3%. However, this did not result in more affordable housing options. Median home prices increased by 25% and rents in major metropolitan areas saw a 24% hike. Various economic factors, such as expensive mortgages, high housing demand from investors, and a focus on luxury living, contributed to the rising costs. Additionally, the creation of new homes did not significantly impact affordability, as both ownership opportunities and rentals were added to the market. The presence of vacant homes also posed a challenge, with approximately 6% of the housing created since 2020 remaining unused. Furthermore, the average number of Californians living in occupied housing units decreased, leading to a higher demand for smaller households. To learn more about the housing situation in California, read the full article on Daily News.
ADU options set to expand in California – HousingWire
Las Vegas-based startup BOXABL has received approval to sell its factory-built accessory dwelling unit (ADU) called the “Casita” in California. The 361-square-foot home is designed to unfold into a fully functional dwelling unit within hours, offering a cost-effective and environmentally friendly housing solution. With California facing an affordable housing crisis, this approval provides more options for residents. Despite being home to one in eight Americans, California has a lower homeownership rate than the national average. The addition of ADUs has been significant, with 22,800 units added last year. However, experts believe that financing options for ADUs need to be expanded to further impact market supply. To learn more about the expansion of ADU options in California, read the full article on HousingWire.