According to stats, over 20 percent of Californians pay more than half their income towards housing. If you are planning to move to California anytime soon or just buy a house for investment purpose and you are wondering why is housing so expensive in California then here’s some information that might help you.
- Lack of Housing
The simple principle of demand and supply applies here. There is more demand for housing than the supply. The western US state has failed to build enough houses to keep up with the rising levels of people who have come to stay in the state in the last few years.
- Increase in Urbanization
The desire to live in urban areas have increased manifold in the last few years. This is a global trend as people all over the world want to live and work in an urban dwelling.
- Technology Influence
The rise of technology-based jobs and the rising pace of growth of the IT sector has contributed a lot to the popularity of California. Tech geeks from all over the world are hoping to be a part of the state where technology rules.
- Developers Face a lot of Challenges
It is a sad fact that in many parts of California, the process of getting new housing approved is not only difficult, but it is very time-consuming and expensive as well. So, the developers are hesitating to initiate new development projects. There is a dire need to ease the laws to make development easier.
- Higher Costs
Developers are also hesitant to help California grow because the cost of land, labor, and raw materials are way too high than the rest of the country and these prices are increasing day by day. The strict building codes and environmentally friendly design requirements are also making things way too difficult.