A ridiculous amount of red tape makes building hard to do.
For a decade, there’s been a shortfall of around 100,000 houses a year. In other words, to keep up with housing demands, a hundred thousand more houses would need to built annually than have been… repeat over ten years and there’s a shortage of houses on the order of a million.
Imagine what that does to costs.
It means that housing is accessible to the wealthy… and that anyone not wealthy is in a bad spot when it comes to feeling secure about having a roof over their head.
But rising housing prices and a market that’s impossible for lower income folks to enter is just the beginning.
California’s birth rates are falling sharply. They’ve dropped steadily for five years.
Declining birthrates are linked to the housing shortage. It makes sense. If you’re in your 20s and barely making rent each month, even though you have a decent job, taking on the expense of a child is something you’ll likely avoid. Just to be practical.
The decline in population now is going to pose big problems for California’s economy in the future. Especially since it depends on young adults entering the workforce to support its enormous welfare state.
This is a classic example of the unintended consequences of liberal policies… and a great look at why those policies are so prone to failure and to harming the demographics they purport to serve. Read more here.