Why more construction didn't fix California's high housing costs
Briefly

Despite California adding 556,000 housing units in the past five years, population decreased by 9,000, challenging the assumption that more construction would lower housing costs. Notably, the minimum annual income required to buy a median-priced home has surged to $218,000, an increase of 82% since late 2019, primarily due to rising mortgage rates and housing prices. This has led to almost no cost relief for house hunters despite fewer competitors in the market, indicating deeper issues in California's housing market dynamics.
The state's housing supply grew by 556,000 during the past five years, but the statewide population decreased by 9,000, questioning the impact of new construction.
A minimum annual income of $218,000 is now necessary to buy a median-priced home in California, a dramatic increase of 82% since late 2019.
Despite an increase in housing supply, cost relief was nearly nonexistent as median home prices rose by 40% over the past five years.
House hunters now face higher mortgage rates and an increased cost of living, further complicating their ability to afford California homes.
Read at www.ocregister.com
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