The problem is simple: California doesn’t have enough homes. Think of it like this:100 people need apartments, but there are only 50 apartments available. What happens? Those 100 people compete for the 50 apartments. Landlords can charge whatever they, so rent goes up.
Now imagine 50 more apartments are built. Now there are 100 apartments for 100 people. Suddenly, landlords can’t charge crazy prices because if they do, people will just rent a different apartment. More apartments = more choices = lower rent. That’s why building more housing helps everyone.
In numbers, California lacks sufficient housing:
- California needs about 180,000 new homes every year
- Only building about 80,000-100,000
- Missing about 3 million homes total
So, why isn’t there enough housing?
It’s expensive to build: Land costs a fortune. Materials cost more every year. Workers need to be paid. All of this adds up. By the time an apartment building is finished, it costs so much that rents have to be high just to pay back what it cost to build.
And, what happens if enough isn’t built?
Rent goes crazy high: When 1,000 people are trying to rent 100 apartments, landlords charge whatever they want. It’s basic supply and demand of not enough supply, way too much demand.
People get forced out: Families, older people on fixed incomes, and young people just starting out can’t afford it. They either move far away or leave California.
Everyone drives forever: People live further from work, so they spend too much time in the car, spend money on gas, and sit in traffic.
Businesses can’t find workers: If your employees can’t afford to live nearby, you can’t hire anyone. Restaurants, hospitals, and stores can’t find workers because those workers can’t afford to live close enough to take the job.
The housing crisis is bigger than any one project. It’s bigger than any one developer. But if we keep building year after year, we aim to make a difference in something bigger.
Rosie Lewis is the Corporate Marketing Manager at The Lewis Group of Companies. A Claremont native who enjoys hiking, yoga, and developing her green thumb, Rosie also appreciates quality alone time.