Millennials simply can't afford to live in OC (Santa Ana, Irvine: affordable apartment, quality of life)

[iExtrapolate]

Originally Posted by MLSFan

the people who can't afford the area... should have moved out of the area to a different area, that's what the market would be telling them...

why aren't they listening and insisting that the govt help them stay in an area they can't afford?

They should move because the government has made the market unaffordable. If they can afford it, then it becomes a discretionary decision.

Houston, Texas has a higher population density and similar incomes. It is still affordable because the burdensome process for housing project approvals that is present in Orange County doesn't exist. If you own the land, you decide what to do with it, not the government.

[expatCA]

Originally Posted by iExtrapolate

My statement wasn't that the government should reach it's hand into the market to "help" people buy a house, it was that the government should stop reaching it's hand into the market. Let the builders create a sufficient supply to meet demand. Stop stopping them.

If more housing is allowed to enter the market, but not at a sufficient rate to meet demand, prices will continue to rise, just not as quickly as they would had that additional supply not been created. Just because prices went up after new housing is created does not negate the relationship between the rate of increase in the supply and the rate of increase in house prices.

New housing is typically at the higher end of the price range because it is more desirable than the old/used equivalent. The wealthier house hunters typically choose the new housing over the old. If that newer housing was never created, those wealthy residents who would have bought the newer houses will instead compete with less affluent buyers for the older housing pushing up the price of the older housing making it less affordable than it would otherwise be. The introduction of new housing at the higher end of the economic ladder puts downward pressure on housing prices across the board. The introduction of new luxury housing, if supply is not being added at a sufficient rate overall to meet demand, will not cause prices to go down, but it will decrease the appreciation rate.

You are assuming any developer will do less expensive housing. Then we will have bidding wars as well and prices will go up, not down. If someone cannot afford to buy now, more housing will not drop the price but at best level it for a while and ... then it will go up. The wealthy will buy anything they want and the middle class will try for what is left. If you build cheap junky housing some college age people might buy it as a starter, but what developer wants to do that? How do you build more houses to exceed, in effect, demand? In OC there is not enough land. Look at the IE. I moved there in 2000 and the population tripled in 8 years where I lived, and now the less desirable areas are growing and .... prices are going up and right now are about double what I sold for and I sold for about double what I paid. Plenty of land, well sorta, but not like OC for weather etc. Reducing building regulations will not lead to any significant drop in price, just more profit for the builder.

[expatCA]

Originally Posted by iExtrapolate

They should move because the government has made the market unaffordable. If they can afford it, then it becomes a discretionary decision.

Houston, Texas has a higher population density and similar incomes. It is still affordable because the burdensome process for housing project approvals that is present in Orange County doesn't exist. If you own the land, you decide what to do with it, not the government.

Houston is still affordable because there is more open land around it and... the weather is not as nice as in OC and that turns a lot of people away. They have the room so land prices are not like OC, so not a good comparison. Plus Houston does have housing regulations and zoning.

[expatCA]

Originally Posted by Wutwutwutwut

what? Houston does not have zoning. Why state things that are demonstrably false...

Play on words, they say they have no zoning BUT they do have "codes".

Here is an example of them and ... they are essentially the same as zoning.

Development Ordinances

[payutenyodagimas]

Originally Posted by iExtrapolate

Let the builders create a sufficient supply to meet demand. Stop stopping them.

the antelope valley is waiting for developers and residents. but nobody is going there. why?

[expatCA]

Originally Posted by Wutwutwutwut

Houston does not have Euclidean zoning. Those development ordinances are just that, development ordinances. In fact, Houston residents have voted against zoning 3 times now.

True, but many ordinances have the same effect. Did you read through the link?

Here is an example;

"Residential Buffering Ordinance

The Residential Buffering Ordinance seeks to provide buffering requirements when a development is proposed that is over 75 feet in height; is located along a local or collector street and abuts single family residential."


They do not build anything they want right next to single family homes AND the height is regulated as well. They have a little different view of such building, but it is also regulated by law and has restrictions, etc.

[expatCA]

Originally Posted by Wutwutwutwut

Well from 2000 to 2010 palmdales population increased by 31%.

And while not the AV, the inland empires population also has increased 30% over that time frame.

People with any intelligence move to areas they can afford.

[payutenyodagimas]

Originally Posted by Wutwutwutwut

Indeed. And due to home prices rising faster than median income, they are moving to historically lower prices areas.

no effect yet. traffic still heavy, home prices are still sky high

[expatCA]

Originally Posted by payutenyodagimas

no effect yet. traffic still heavy, home prices are still sky high

Enough people and investors with money to buy so it won't change any time soon. For those who can't afford it, get a better job/skill or .......... move to where you can afford a decent life. It is not society's responsibility to see that a person can live in OC just because they want to. They have to afford it.

[saibot]

Originally Posted by Justabystander

Are you serious? What if you are motivated and educated and still can't swing a ranch style house that costs $600,000 that the prior owners who were there for 50 years paid $30,000 for? Total ignorance when it comes to the cost of housing in expensive areas.

Originally Posted by expatCA

But 50 years ago $30,000 would be like making $300,000.00 today. Those who are doing so have no problem just as the ones 50 years ago did not.

OK, let's play the real estate game. Coincidentally, it happens that my parents bought their family home in La Habra exactly 50 years ago, 1967.

They paid $40,000. According to an online calculator, that's the equivalent of $293k in 2017 dollars.

But is that house now valued around $300K? No, the zillow estimate is $928k. NOT even in the same ballpark!

How can anyone say it's as easy for homebuyers today as it was 50 years ago?