Welcome to today’s roundup of real estate news! In our featured stories, we explore the potential lessons California can learn from Vienna’s approach to affordable housing, the ongoing battles over housing development in California, and how Nevada’s housing crisis may impact the upcoming election. We also delve into a study that challenges traditional affordability metrics in California and share insights from state legislators on addressing the housing crisis. Plus, we provide valuable information for homebuyers with predictions for the housing market in 2024. Whether you’re interested in policy, market trends, or practical advice, there’s something here for everyone. So, let’s dive in and discover more about the latest developments in the world of real estate!
Could Vienna’s approach to affordable housing work in California? | Housing | The Guardian
Housing costs and homelessness are increasing in California, while in Vienna, people of all income levels live in subsidized housing. Several delegations from California have visited Vienna to understand the city’s success in being ranked as one of the world’s most livable cities. Vienna’s subsidized housing developments with shared amenities and affordable rents have impressed visitors. In contrast, California has seen a 40% rise in homelessness, with housing costs double the national average. Vienna’s housing policy ensures affordable rents for all, including the middle class. Sixty percent of Viennese residents live in subsidized housing, compared to just 5% in California. Vienna builds thousands of new units of subsidized housing each year, focusing on supply rather than demand. The city’s success is supported by a 1% tax on salaries, generating a permanent funding stream for construction. Inspired by Vienna, Los Angeles launched its own landbank and increased transfer taxes on expensive homes to fund affordable housing. However, legal challenges and low property taxes remain obstacles. The article highlights the need for a shift in focus towards building new homes and creating mixed-income neighborhoods. The summary encourages readers to learn more by visiting the Guardian article.
New battlegrounds emerge in CA’s endless housing war | Opinion
California’s ongoing political battle between the state and local communities over housing has found two new battlegrounds: one on the San Francisco Peninsula and the other in Southern California. The state has been enacting laws and regulations to push cities to embrace housing development, particularly for low-income families. However, communities resistant to such housing respond by challenging the state’s authority, creating barriers, or dragging their feet. Recently, clashes have arisen in Portola Valley, where the town’s housing element was decertified for failing to make necessary zoning changes, and in a coalition of charter cities in Southern California that successfully sued to exempt themselves from Senate Bill 9, which ended single-family zoning. While these battles may provide temporary relief for the cities involved, they are just part of the never-ending war over housing in California. Learn more by visiting the CalMatters article.
Will California’s housing crisis bring a Trump win in Nevada?
Nevada is facing skyrocketing housing prices, potentially influencing the political landscape in favor of Donald Trump in the upcoming election. Clark County, the heart of Nevada’s housing battleground, has seen home sale prices surge by 50% since 2021, with average prices now around $414,000. Renters are also struggling, with single-family residence lease costs increasing by nearly 70%. The housing crisis in Nevada is largely attributed to a combination of low supply, rising interest rates, and a population boom fueled by Californians fleeing their state. The influx of California residents outbidding and outbuying locals has created income disparities and made homeownership increasingly unattainable for middle-class voters. The lack of affordable housing and bureaucratic obstacles to new construction exacerbate the nationwide housing crunch. President Biden has made housing affordability a central focus of his campaign efforts. The housing crisis in Nevada may impact the state’s presidential election outcome, potentially ending two decades of Democratic dominance. Learn more by visiting the New York Post article.
California Housing Is Even Less Affordable Than You Think, UC Berkeley Study Says | KQED
A new study from UC Berkeley’s Terner Center for Housing Innovation argues that California’s housing affordability crisis requires a shift in perspective. Instead of asking if a place is affordable, the study suggests asking who can afford to live there. The study reveals that current metrics often overlook the fact that many people who cannot afford rent or mortgage payments do not live in certain areas. By redefining affordability and considering factors such as transportation and childcare costs, the study provides a more nuanced understanding of the state’s expensive areas. The research highlights the need for policymakers to focus on building housing for people at all income levels to slow the growth in home prices. To learn more, visit the KQED article.
STATE LEGISLATORS SHARE KEY INSIGHTS ON CALIFORNIA’S HOUSING CRISIS
A solutions discussion forum hosted by the Center for California Real Estate (CCRE) brought California’s housing crisis to the forefront. The forum featured a wide-ranging discussion with Assemblymembers Pilar Schiavo and Chris Ward, covering topics such as housing supply, affordability, homelessness, and climate issues. Panelists highlighted ongoing efforts and shared insights on addressing critical housing issues in the state. Assemblymember Ward emphasized the collective work being done to turn the trend lines around and solve California’s housing crisis. The Center for California Real Estate (CCRE), an institute of the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), serves as a resource for knowledge and research on housing issues. The CALIFORNIA ASSOCIATION OF REALTORS® is one of the largest state trade organizations in the United States, dedicated to advancing professionalism in real estate. Learn more about the discussion and the CCRE by visiting the PR Newswire article.
Housing Market Predictions 2024: What Homebuyers Should Know
As the housing market in 2024 continues to face challenges, potential homebuyers need to stay informed. Experts predict that home prices will increase throughout the year, making affordability a concern. Low inventory remains a chronic issue, keeping prices steady even as mortgage rates are expected to go down later in the year. However, the Federal Reserve’s actions to combat inflation will influence the trajectory of mortgage rates. While some speculate about a housing market crash, the lack of inventory makes it unlikely. Buyers should focus on improving their credit scores, exploring mortgage options for first-time buyers, and saving for down payments and closing costs. Though conditions may be tough, there is hope for improvement if rates drop later in the year. To learn more about housing market predictions in 2024 and how to navigate the market, visit the Business Insider article.