In 43% of Californians do not have enough funds to purchase a home in the Golden state

Buying a home is the most important part of the American dream, but for many Californians, this dream remains elusive.

A new study published by the Quinnipiac University Polling Institute, shows that 43% of Californians believe that you can’t afford a house in the Golden state. For people aged 18 to 34 years, these numbers are even more impressive: 61% of respondents indicate that their homes in California can not afford them.

For example, Jared and Sarah of Barca trying to buy a new house, but they still have to live with relatives in Carmichael (Sacramento, CA). Jared explained that he and his wife moved to relatives, because the rent has increased from $729 to almost $1400 for 6 months. The man added that to purchase a home now unrealistic, even though he works two jobs.

Melissa king also lived with their relatives in Roseville (Sacramento, CA), until we finally found a house of 120 square meters in the Northern highlands with three bedrooms and one bathroom. She and her husband bought a house for $250 thousand with the down payment, they were advised by the realtor and loan officer.

The housing crisis in California is a real problem, and many people, especially the young, can not afford even the initial payment for a new home.

Governor Gavin Newsom allocated $1.7 billion for the expansion of the market of affordable housing, but construction companies say that more needs to be done to solve this problem. Michael Eaves, the representative of the North State Building Association, said that a major obstacle to affordable housing is the shortage of manpower. Developers often struggle to find enough skilled workers to build new houses.

According to Marina Viant of the California housing consortium, tax fees of $50-60 million, which is included in the cost of the house, also make purchasing property unaffordable for many people, especially for Californians with low incomes living in disadvantaged areas.

In the housing market with high demand and supply shortage can be faced with many difficulties.

The issue of affordable housing plays a major role for Newsom, who is expected to re-refer this problem to the authorities of the state on February 12 in the Capitol.

Whether real aim of the Governor to build 3.5 million new homes in just 6 years? On mathematical calculations, this means the construction of about 583 thousand units of housing per year by 2025. However, California is struggling to build at least 200 thousand units per year. For example, in 2017, the state gave permission for the construction of only 113 thousand housing units.

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