Welcome to today’s roundup of news in the Real Estate category! In our first story, we learn that Texas’s major housing markets, including Dallas, Houston, and Austin, outpaced California by building 300% more homes last year. The difference can be attributed to factors such as migration, employment opportunities, accessibility to land, better regulation, and affordability. Meanwhile, California is opening applications for the California Dream for All program, which provides down payment assistance to first-time homebuyers. Experts predict a slower rise in home prices in 2024, but challenges persist due to elevated mortgage rates and limited housing stock. We also explore the concept of builder’s remedy in California, a potential solution to overcome zoning challenges faced by developers. Additionally, lawmakers in California are taking action against corporate landlords to address the impact of institutional investors on the housing market. Lastly, a proposed decision by the California Public Utilities Commission raises concerns about the future of California’s community-solar market. To delve deeper into these stories, click on the respective links below.
Texas’s big 3 housing markets built 300% more homes than California’s | Fortune
According to data collected by Zonda and shared with Fortune, Texas’s top three housing markets (Dallas, Houston, and Austin) built 300% more homes than California’s last year, despite having an 11% smaller population. The difference in homebuilding between the two states can be attributed to factors such as migration, employment, accessibility to land, better and easier regulation, and affordability. Texas benefits from fewer local policies and regulations, lower land costs, and a development-friendly environment. While the cost of housing has increased, Texas remains more affordable compared to California. In contrast, California faces challenges due to zoning and entitlement rules, opposition from NIMBYism, limited developable land, and high home values. Although Texas has its own growth control concerns, it is generally easier for developers to build homes in the state. However, some analysts worry that future population growth may outpace home construction in Texas. Despite these issues, Texas continues to attract people looking for affordable housing and job opportunities.
Applications Open April 3 for California Program That Helps Pay for Your First House | KQED
The California Dream for All program, which provides down payment assistance for first-time homebuyers, will open applications on April 3. Last year, the program’s funding of approximately $300 million was exhausted within 11 days. This year, the state has allocated about $250 million to assist between 1,600-2,000 new applicants. The program aims to close the racial homeownership gap by helping those who may not have generational wealth to purchase their first home. Changes have been made to address disparities in geographic reach and demographic targeting. Eligible applicants must be California residents, first-time homebuyers, and meet income and credit score requirements. The program offers a shared appreciation loan, where the state contributes up to 20% of the home cost. Applicants have until the end of April to submit their applications, and selections will be made through a lottery system. If not selected, there are other homebuyer assistance programs available in the state.
Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again? – Forbes Advisor
As the spring home-buying season approaches, there are indications that buying and selling activity in the housing market may not fully flourish. Elevated mortgage rates and home prices, coupled with historically low housing stock, continue to make homeownership unaffordable for many, especially first-time buyers. Experts anticipate a slower rise in home prices in 2024 compared to previous years, but regional variations will persist. To achieve a housing recovery, increased inventory and cooling mortgage rates are necessary. However, persistently high rates and limited supply hinder affordability. Despite some signs of growth, the housing market faces challenges, and the likelihood of a market crash remains low. While foreclosure activity has increased, it is not expected to reach pre-pandemic levels. Buying a home is a personal decision, and experts advise focusing on finding a home that meets current needs and is affordable rather than trying to time the market.
Can California Make Builder’s Remedy Work?
Builder’s remedy, a long-forgotten loophole in California’s housing laws, is being tested by developers in courtrooms to overcome the challenges of getting more housing built. The remedy allows developers to bypass local zoning rules if a city fails to comply with state-approved housing plans. However, the process is complex and time-consuming, involving litigation and significant financial resources. Recently, a court ruling in favor of Cedar Street Partners marked the first approval of a builder’s remedy case in California, setting a precedent for other projects. While the remedy offers potential solutions, its effectiveness and implementation across jurisdictions remain uncertain.
California housing: The impact of corporate landlords – CalMatters
Some of California’s most powerful lawmakers are taking action against corporate landlords this legislative session. The debate centers around the effect of institutional investors on California’s housing market and affordability crisis. While defenders argue that these investors helped stabilize housing markets during the Great Recession, critics see them as depriving potential homeowners of the American Dream. The state legislature will consider three bills aimed at limiting the acquisition of single-family homes by institutional investors. However, data on the industry’s size and impact remains scarce. Despite differing definitions, estimates suggest that large institutional investors own a small percentage of the overall housing stock. Critics blame the lack of housing supply for high home prices rather than investor activity. The debate also raises questions about rising rents, neighborhood diversity, and the pros and cons of corporate landlords. To learn more, read the full article on CalMatters.
New policy proposal dims hopes of reviving community… | Canary Media
A proposed decision by the California Public Utilities Commission (CPUC) has cast doubt on the future of California’s community-solar market. The decision sides with major utilities against a coalition of solar industry groups, consumer advocates, environmental-justice organizations, and labor unions, stating that the Net Value Billing Tariff (NVBT) conflicts with federal law and does not meet the requirements of AB2316, the state law that ordered the CPUC to create an affordable and equitable community-solar program. The NVBT program, supported by a broad coalition, aims to boost community solar in California and help the state meet its clean-energy goals. However, the proposed decision suggests altering existing programs instead of implementing the NVBT. Critics fear that this decision could hinder California’s chances of receiving federal aid for community solar and undermine the state’s clean-energy transition. To learn more, read the full article on Canary Media.