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Old 04-19-2019, 11:43 AM
 
Location: Somewhere flat in Mississippi
10,062 posts, read 10,656,963 times
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Who benefits from the housing shortage in California? And do some of the people who complain about the lack of affordable housing propose solutions that won’t actually solve the problem?
https://reason.com/2019/04/19/califo...in-the-making/
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Old 04-19-2019, 01:26 PM
 
12,520 posts, read 7,358,831 times
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Quote:
Originally Posted by Mouldy Old Schmo View Post
Who benefits from the housing shortage in California? And do some of the people who complain about the lack of affordable housing propose solutions that won’t actually solve the problem?
https://reason.com/2019/04/19/califo...in-the-making/

One can easily write a 200 page paper discussing the CA housing crisis. In fact, Stanford researchers released a paper on just one subset of the housing - rent control, and it's already almost 50 pages long.
Housing is a very complicated issue to say the least.

But to keep the post very short and to generalize: the housing shortage obviously benefits those who already own properties in CA, but also some politically motivated groups who use this setting to try to cast their influence.

To your second question, almost everyone who complains about lack of affordable housing propose solutions that won't solve the problem; aside from Scott Wiener. Even his solution is going to take a long time to see the result. To some, that's not a solution at all.

.
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Old 04-19-2019, 02:54 PM
 
18,173 posts, read 12,615,536 times
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Quote:
Originally Posted by beb0p View Post
One can easily write a 200 page paper discussing the CA housing crisis. In fact, Stanford researchers released a paper on just one subset of the housing - rent control, and it's already almost 50 pages long.
Housing is a very complicated issue to say the least.

But to keep the post very short and to generalize: the housing shortage obviously benefits those who already own properties in CA, but also some politically motivated groups who use this setting to try to cast their influence.

To your second question, almost everyone who complains about lack of affordable housing propose solutions that won't solve the problem; aside from Scott Wiener. Even his solution is going to take a long time to see the result. To some, that's not a solution at all.

.
The shortage exists for two basic reasons.


1. Not enough being built for all who want to live there
2. Costs going up because of the number of people from outside of CA and investors that an handle the increased prices.


Number 1 cannot be solved as fast as people are born and grow up in CA up or want to move to CA. The last figure I saw was the State is about 100,000 behind each year. Not enough workers, materials etc to handle it.


Number 2 will only end when the prices are so high even the rich will not pay it.


The solution? None except driving people out of CA and making it so bad no one else will want to move there.
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Old 04-19-2019, 03:00 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
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I grew up in Lafayette, CA, in a house that cost my parents $32,000 in 1960. After their divorce the house was sold in 1973 for $50.000. Today Zillow shows the value at $1.9 million.
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Old 04-19-2019, 03:02 PM
 
Location: Business ethics is an oxymoron.
2,171 posts, read 2,625,293 times
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Quote:
Originally Posted by beb0p View Post
the housing shortage obviously benefits those who already own properties in CA,
And why is that a problem?
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Old 04-19-2019, 04:16 PM
 
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Originally Posted by Des-Lab View Post
And why is that a problem?
I never said it is.

.
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Old 04-21-2019, 08:32 AM
 
27,572 posts, read 56,749,683 times
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Quote:
Originally Posted by Hemlock140 View Post
I grew up in Lafayette, CA, in a house that cost my parents $32,000 in 1960. After their divorce the house was sold in 1973 for $50.000. Today Zillow shows the value at $1.9 million.
Yesterday I was in Santa Clara attending my Godfather's funeral... 60 years ago he bought a new 3 bedroom 2 bath home in Santa Clara... the home is impeccably original... same 1959 Kitchen and Baths... he was newly married and age 25... his wife was a nurse and combined they could just qualify... RN and newly minted Stanford Master of Engineering... she was supporting the family as he worked to get his Masters.

They paid $18,000 for it new and the neighborhood comps say it is now 1.8 million... so a 10,000 percent price increase plus he absolutely loved all the perks that Santa Clara offers... he truly loved his city and was very active publicly...

Thing is the home will sell and it will go to another family...

He has 4 grand daughters... all in their 20's and one with her husband have already bought a home cashing out their start up stock options... funny because her aunt did the same after she went to work as a summer intern in 1979 for a start up called Apple Computer... she was 17 years old.

As long as the Bay Area continues to produce wealth it will be desirable...

Of the remaining 3 two are also working for start ups and the 4th is a teacher...
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Old 04-21-2019, 10:36 AM
 
8,651 posts, read 2,799,579 times
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There is no housing shortage. None. We have market demand and market supply, and they intersect at market-clearing prices (P*) and market-clearing quantities supplied (Q*)


(Moderators: I own the copyright to the following image.)



Instead, what we have are people whining that housing is expensive just as they whine that
  • cars are expensive,
  • cable TV/Internet/Land Line Phone bundles are expensive,
  • cell phones are expensive, cell phone service is expensive,
  • insurance is expensive,
  • groceries are expensive,
  • gasoline is expensive,
  • University tuition is expensive,
  • assisted-living is expensive,
  • and dying is expensive.


But you rarely see people whining that there is
  • a shortage of cars,
  • a shortage of cable TV/internet/land line bundles,
  • a shortage of cell phones,
  • a shortage of cell phone service plans,
  • a shortage of insurance, a shortage of groceries,
  • a shortage of groceries,
  • a shortage of gasoline (in the modern era),
  • a shortage of Universities,
  • or a shortage of assisted living beds or
  • a shortage of caskets and morticians.
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Old 04-21-2019, 12:27 PM
 
27,572 posts, read 56,749,683 times
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What we have is those with the desire and ABILITY to purchase doing so...

Sellers can ask for the moon or any price in between but without buyers there is no exchange...

My city of Oakland California was particularly hard hit... no city block was spared Bank Owned property... owning a home was out of favor... renting was the smart thing... why own when you could rent for half the price is what I so often heard...

Home prices in my zip codes fell 60 to 80% from the peak...

The media said it would take years to work through all the abandoned properties...

I was advising everyone thinking of buying now is the time to get serious... one of our nurses... a single mom bought a foreclosure that needed some work... almost everyone in 2011 told her it was a mistake... the rent she would be paying now is more than her mortgage as rents have really gone up... and her home has doubled in value...

The real point is she has locked in her basic housing costs and now added some stability going forward...
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Old 04-21-2019, 07:38 PM
 
Location: Tijuana Exurbs
4,266 posts, read 11,082,406 times
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I want to second Rational Expectations point about people complaining that housing is expensive. In today's World, there are probably 1 to 2 billion people who want to live in California. With that much demand, the available housing is going to be rationed by price.

In San Diego, the City has zoned large areas for residential multi-family. More than enough for the expected demand. It's there for the developers if they want it. But they don't want just any land to develop, they want CHEAP land to develop.

Therefore, you see the constant clamor to rezone single-family neighborhoods into multi-family, a la Scott Weiner. We don't need a San Francisco solution for San Diego.
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