UCLA: California Housing Will Get Less Affordable
UCLA Anderson Forecast Senior Economist Jerry Nickelsburg wrote in his forecast that government agencies need to reconsider their policies surrounding affordable housing if they hope to make a dent in the problem.
â€œThe economics are clear,â€ he wrote. â€œWhen affordable housing is provided, say by requiring developers to have a fixed percentage of their new units â€˜affordable,â€™ then the demand for that housing will be in excess of the supply.â€
Nickelsburg added that â€œthe policy itself recognizes that building constraints — natural or regulatory — will not permit a sufficient number of new homes to be built to satisfy the demand at affordable levels.
â€œThis being the case, affordable housing policy needs to be explicit about who the housing is for,â€ he wrote. â€œFor example, one might advocate affordable housing so that teachers in public schools can purchase housing that would otherwise be difficult for them to acquire.â€
Read Full Story Here