A report in the L.A. times confirms what we keep saying here: A housing shift is underway that means fewer homeowners and more renters across California.
As a result, the areas that were hit hardest by the housing bust — including the Central Valley — won’t get a construction boom to pull them out of the economic doldrums.
In our area, who’s going to buy all the new homes out at Loma Rica Ranch if the project goes forward — not to mention the ones that are vacant or in foreclosure. It’s going to take years to sell off that inventory.
We’ve been having an economic development discussion on Sierra Foothills Report about the need to diversify our local economy beyond construction and real estate. I’m not sure it’s sinking in yet, however.
Isn’t it time we “git-r-done”?
The L.A. Times housing report — front page news — is here:
“UCLA forecasters have seen the future of California’s housing market, and it looks like this: more apartments near the coast, fewer McMansions in the desert.
“That prediction is based on several factors, including expectations that rising fuel prices will encourage people to live closer to jobs along the Southland coast and in the San Francisco Bay Area.
“The state’s population is also skewing younger, meaning there will be more demand for urban rental units and less demand for suburban cul-de-sacs, according to the quarterly economic forecast released Wednesday by UCLA’s Anderson School of Business.
“‘The incremental demand for housing is moving more into multifamily housing,’ said Jerry Nickelsburg, senior economist with the forecast. “Many of the younger generation have been buffeted by the boom and bust in the housing market, and see value in living closer to work.
“That’s bad news for the state economy, however, for two reasons. One is that construction of multifamily homes requires less labor than construction of single-family homes. Second, areas such as the Inland Empire and Central Valley that were hit hardest by the housing bust won’t get a construction boom to help pull them out of the economic doldrums.”
The rest of the article is here.
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