Bay Area Housing Set To Get Even Pricier Says UCLA
Source: sf.curbed.com | Re-Post MNM Partners, LLC 6/29/2017 –
The good news in University of California Los Angeles’s new Anderson Forecast—the Anderson School of Management’s regular assessment of how jobs and housing will shape up in California and the larger United States—is that California cities are building more housing than expected.
The bad news is that it’s still not enough, at least not according to UCLA Senior Economist Dave Shulman. In an accompanying essay titled “Housing Activity Grinds Higher,” Shulman says:
Although we marked up our forecast from last quarter to 1.27 million units in 2017 and 1.34 million units and 1.37 million units in 2018 and 2019, respectively; that level of activity remains below the 1.4-1.5 million units per year we estimate to be consistent with long-run demand.
Shulman expanded on the problem in comments to the Sacramento Bee this week, noting:
“California is still attracting high-income people, who are creating an enormous amount of wealth, but low and middle-income people like teachers are leaving because housing has become extraordinarily expensive.”
The UCLA report calculates that of the seven least affordable cities in America, six are in California and two are in the Bay Area—San Jose and San Francisco, naturally.