Your Rent Will Keep Rising SoCal Residents: Here is Why

Written by Posted On Thursday, 11 July 2019 09:30
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Southern California or SoCal is known for the great weather and the nice beaches, but rent cost has been on the rise and will continue to increase in the following years. The current rent in 2019 is around $2,200 is more than double the national average for the complex of the same size? Real estate experts say that the gap between the cost of living in LA and the rest of the country will continue to get larger, all the way through 2020. When gainfully employed, educated people with salaries hovering around $250,000 a year are looking to move to nearby cities due to the inability to find a home within their budget that meets their standard of living, it is clear that California is pricing out its own residents. And the truth is - there isn't really much anyone can do about it. Is it time to move to another state?

SoCal Rent is High, Here is Why

Tom Thomson, a Venice Beach, CA resident says, “While no single problem is exclusively to blame for the incredibly inflamed housing cost in Los Angeles”. It is a vicious cycle of economics - people want housing, construction companies can't fill that demand because the cost to them is too high, this takes money and jobs out of the metropolitan area as builders, investors, and developers look to the suburbs to build, so the demand grows, and the cost grows alongside it.

What is even more unexpected is that the positive growth in jobs and the rest of the economy is actually putting more of a strain on housing cost. Los Angeles has added tens of thousands of jobs in almost all sectors of the market, from the lower level entry jobs, all the way to opening space for new executives and CEOs, and as you can expect, that means more people looking to move to the city to fill the openings which the jobs have created; thus adding to the demand for housing that seems insatiable in Los Angeles.

Why Anything Else Hasn’t Worked?

As much as state litigators may want to deal with the overwhelming housing shortage in LA, there is a huge problem - namely, that most decisions regarding new developments and building fall into the laps of city and the local government says, Thomson. The state governments' hands are tied. Unfortunately, the smaller governments tend to have a much more narrow view of the situation, seeking to raise gains and find solutions for /their/ city, without much consideration for the surrounding areas.

Additionally, the main tool that state legislators could use to quickly build homes, is in direct opposition to a myriad of business and environmental interests. The C.E.Q.A (California's governing environmental law), in many ways, prevents the building of new housing developments at any rate, which would make an impact on the housing shortage.

Maybe Something Will Work?

So the question becomes... what can we do? Should we sacrifice environmental protection laws to lower housing costs? It is a question that has to be addressed, but with so many political influences and issues, most lawmakers won't touch.

And SoCal residents and homeowners associations aren't making it any easier. Many of these local governing bodies are in stark opposition to the rapid development of housing- because that means that their neighborhoods would have to face the dreaded "D" word. Density.

Push-back from neighborhoods and suburban areas is obvious- no one wants to be crowded in, especially in the areas which are the most affected by the housing shortage (affluent coastal communities). So it seems as though lawmakers are blocked on all fronts.

Have California Lawmakers Given Up?

This year, it seems as if state lawmakers have given up on dealing with the increasing housing cost. Little to no new solutions have been proposed, and those that have are not being passed through and put into place. The state is at a standstill and lawmakers seem to take the "I guess we'll just have to wait and see what happens" approach.

Minimum Wage in California Will be $15 by the Year 2022

"Economists worry that if lawmakers don't fix the housing supply problems, many of the state's efforts to improve the lives of low-income residents will falter. Many legislators cited high housing costs as a reason to boost California's minimum wage to $15 per hour over the next six years, but "'unless something's done to stem housing costs, much of that pay increase could be eaten up by higher rents, 'Thornberg said." (LA Times)

What is the Decision?

Thomson says, “SoCal is in a pickle, and with legislators openly admitting that the housing problem is not a priority for this year, the residents will have to pay the price” according to the online company Property Records.

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