California housing market's supply and demand imbalanced
Dec 14 2011 5:42PM
A new report says that housing preferences in California are rapidly changing, surpassing the housing stock and leaving it looking for stability. The Urban Land Institute released a report stating that this will, and may have already been, to blame for the difference in housing supply and demand.
According to the report, the current supply of subdivision lots exceeds demand and they expect it will continue to be uneven throughout the next 23 years.
The research is headed by ULI member and urban planner Arthur C. Nelson, who believes that the the housing demand shift partially relies on California's homeownership rate, which is currently at 57.9 percent. This number is expected to decline due to the current state of the housing market and requirements that make it more difficult to qualify for home mortgage loans.
The source says that if homeownership falls, rentals will make up the housing demand, increasing the already present gap in supply and demand in California.