Why Is Rent So High in California? скачать в хорошем качестве

Why Is Rent So High in California?

Why is rent so high in California? It’s been a lifetime dream for many to live in the Golden State. And they have good reason to nurse the dream. Is the state of California not beautiful? Does it not have clement weather? What about the iconic cities there? These are just a few of the reasons many are dying to find somewhere to call their home in the state known for its beaches, surfing, and exotic wine, as well as its large economy and progressive politics. It’s also the home of Hollywood. However, there’s a challenge. The amount that Californians pay as rent is prohibitive. This prevents many from actualizing their dream. But why is rent so high in California? Please enjoy this video till the end. Generally High Cost of Living Before anyone starts to isolate rent, it is good to look at the bigger picture. Though one of the best states to live in in the US, it’s not one of the cheapest. According to data obtained from several reputable websites, the cost of living in the state is 1.24 times higher than the national average. It’s the third most expensive in the US. Remember, rent is just a percentage of costs. While it has been considered before it was determined that the state is expensive, it should also be noted that all the higher prices of other goods and services will have a pulling effect on the rent. Thus, it is only logical to expect rent to be high in an absolute sense because the absolute costs of living in the state, including residence, are high. Not Enough Housing Here, we just have to remember the effect of the law of demand and supply. Bearing that in mind will assist in making sense of the housing availability figures. According to the housing department in California, the state needs to build an average of 180,000 new houses every year before it can satisfy its almost 40 million population. However, the Golden State has managed to build about 90,000 houses or less yearly over the past 10 years. Imagine that! This means as the population increases each year, new houses are not built. It’ll take only two or three years before the supply shortfall is felt. San Francisco and Los Angeles have been the worst hit by this disparity between supply and demand. In almost every big city in the state, houses aren’t enough to go round. The available ones become more expensive. Developers Not Rising to Changes If a lack of housing is one of the factors driving the rent to the sky, would the simple solution not be just building more houses? How we wish it is as simple as that! Building houses is time-consuming rather than simplistic. Developers, lacking the patience to wait for RoI, are hesitant to build new houses. Many of them prefer remodeling. That won’t translate to more houses. As long as developers continue to fall to rise to the changes, the shortfall in housing supply will persist. In effect, the available ones will become unaffordable to buy and rent. Insufficient Land But then, it’s reasonable to ask, why are developers not rising to the challenge such that there are not enough houses in California? In reality, many factors can be held responsible for the failure of the state to keep up with the high housing demand in its cities. Yet, one of the biggest and almost insurmountable obstacles is a lack of available land on which houses can be built. Subscribe to my Channel: shorturl.at/lnC79 Website: https://learningcanteen.com/ ✅ For business inquiries, contact me at [email protected] ---------Support my channel------ Bitcoin: 3AUhicWAZ2WhsuajJaY2MhBQustFx18hQn Paypal: [email protected] Try Tubebuddy for free: https://www.tubebuddy.com/learningcan... IMPORTANT INFORMATION This video contains images that were used under a Creative Commons License. If you have any issue with the photos used in my channel or you find something that belongs to you before you claim it to youtube, please SEND ME A MESSAGE and I will DELETE it immediately. Thanks for understanding. Click here to see the full list of images and attributions: #california #usa #unitedstates