The California Housing Market: Honest it is not a conundrum...

The California Housing Market: Honest it is not a conundrum! There is a simple solution to fix both the Housing Shortage and the Astronomical Prices.

How many times have you heard or read that the California Real Estate Market is such a difficult housing market? The answer is so simple, it is due to the Housing Prices. In other words, it is all about the affordability in our state. Home prices have increased astronomically compared to the national averages. Why is that? Politicians and Housing Gurus are wringing their hands and the standard mantra:  We need to solve the Housing Shortage and help the Homeless Population.

Just as a background I have been a greater Los Angeles Realtor for about 22+ years and I have heard this virtually every day “we need to study this problem” then after hundreds of thousands of dollars paid to consultants who happen to be “friends of the politicians” the solution is announced “we need to raise taxes”.  No do not worry this is not going to be a political rant.

The, SOLUTION is simple” Build more housing”! So, what is stopping development in Los Angeles? As a Vacant Land Specialists who works and talks to developers, the answer is so simple: Why does it take three years to never to get a home approved for building in Malibu? Two reasons, one of it is the Building Approval Department in Malibu and the second is the Coastal Commission Approval if the land is within two miles of the Pacific Coast. Hence here is the answer: Lift the restrictions and unnecessary delays in the Approval Process.

Why does it take two to three years to build a home in the Hollywood Hills? Two reasons: The Los Angeles Baseline Ordinance more affectionately known as the Hillside Ordinance and neighborhood activism! Yes, those same neighbors who built their home do not want you to build your home and will work overtime to slow you down. This we affectionately call NIMBY-ism aka., ‘Not in my Back Yard’ mentality.

Now with that said you will hear that there is not enough land: They do not build land anymore… there is a limited supply… OK I get it. So, what is the solution you might ask? Again, if you have been keeping up with the facts Amazon has basically destroyed the Shopping Malls on the ground, you see them struggling trying to survive. Malls are bringing in Restaurants to attract foot traffic. Sorry this is just a short gap answer. Let’s face it the vast majority of us have switched over to shopping via the Internet, to get the best value and prices.

Hence, my long-term answer is simple: Convert the Shopping Centers to Multi Unit Housing. Simple, all the politicians need to do is change the Zoning Restrictions.

Now, to summarize: 1. lift restrictions for developers to build and 2. simplify the Zoning to build. Clearly this would allow the massive shortage of housing for Purchase and even for Leasing to shrink. The rest is simple economics. This would permit development to happen and when there is more inventory then the prices would be more in line with the rest of the Country.

Clearly this is such a simple solution so why not implement this idea? Anyway what do I know, I am not a politician just a Beverly Hills Realtor!