Editor’s Note: Richard Douglass has served as Trumark Homes’ Southern California Division president since 2015. A San Clemente native, his multi-faceted real estate career spans more than 30 years in award-winning development, planning and managing of billions of dollars in complex infrastructure and the construction of more than 15,000 homes, with many industry awards.
California’s “housing crisis” is cloaked in acronyms. Regional Housing Needs Allocations (RHNA). Transit-oriented development (TOD). Accessory dwelling units (ADUs). Legislative solutions appear as “AB” this or “SB” that.
The acronym that occurs to me? B.S.
California’s housing shortage seems simple: not enough housing is being built. More accurately, much housing is hamstrung or blocked. Low inventory and high demand means potential homeowners are priced out.
The “housing crisis” is really a “crisis” rooted in the shocking ignorance about housing feasibility. Bad political decisions amplify this, and the result is acute social distortion.
Housing affordability is at a 40-year low. Homebuyers spend about 44% of their income on housing. Prices continue to greatly outpace inflation. Most of our children will be priced out of California. So will tradespeople who build the housing and essential service providers, including first responders and service workers. Caretakers for aging baby boomers? Forget it.
Social distortion is coming – fast.
The answer? Simple but not easy. Start with relaxing several antiquated policies. Press the originators of housing policy to understand its economics. These solutions could bring a sea change for new housing.
Change the dialogue. We’re inundated with unending rules of laws and policies. Most current housing bills are window dressing that allow politicians to claim that they are “addressing the housing crisis.” Virtually none of it results in housing growth.
Call all this out for what it is. B.S.