California housing affordability is in a crisis.
Construction is being drawn back from building new homes by the home builders due to government fees, labor, the high cost of materials and due to the impending high tariffs.
Compared to this time last year, building of new homes has declined 20%. Economists say this is the opposite that is required to ease the California housing storage, which is going in the wrong direction.
This is the first decline in home building since the recession. Existing new homes are overpriced and the average potential home buyer can’t stretch their dollar to accommodate the rising prices.
The home builders can’t sustain a profit with the above-mentioned drawbacks.
This administration is not making it easy for home builders to make a profit, which they are entitled to.
Permits to build have dropped nationally by 6%, which is not a good sign for the economy.
There will be thousands of construction workers out of a job, which is also not good for the economy.