The “California Dream” of homeownership is not yet dead, but it’s on life support. As housing prices continue to hit record highs, economic divisions are deepening across the state. The details are intricate, but the overall picture is clear: Our strong but dysfunctional economy is driving away families the state needs for sustainable economic growth. New research from the San Francisco-based Next 10 and the Los Angeles-based Beacon Economics offers a snapshot of a state economy that is increasingly becoming defined by its housing shortage. It’s no secret that California’s home supply severely lags demand. Since the trough of the recession in 2009 through last year, an average of 73,000 new housing permits were issued each year. This is down from an average of 135,000 permits issued annually between 1991 and 2007.
Read Full Article