Affordable Housing crisis in California - what is the cause of this?

Just heard a PBS report on the people of Anaheim who basically live in poverty while being employed full time by Disney (at Disney Land & other locations) as well as working second jobs. A 30 year employee living in poverty seems impossible to comprehend when they are working for one of the most profitable and "stable" companies in the US - so there has to be another reason for the lower wages as well as high housing prices.

What I see as the problem is largely illegal and even "legal" immigrants ("legal" meaning they got citizenship via anchor babies, chain migration/immigration, and other methods of exploiting the US's family friendly and compassionate laws).

A conservative estimate puts the illegal alien population in 2014 at around 3.1 million! That is 1 in 10 or 10%! Now add in all the "legal" immigrants at roughly

www.migrationpolicy.org...

www.ppic.org...

Foreign born Cali residents

www.ppic.org...

www.americanimmigrationcouncil.org...

This shows that over 27% are foreign born - the number is 10-11 million people (which is more than 27% but I didn't come up with the numbers - they are from first link under foreign Born Cali Residents)
-Second link says the # is 34+%


So why are wages low? Why is housing so much more expensive?
-How much of a drain are the 3.1 million illegals on state resources?
-What would happen to real estate if 10% of population wasn't there - the people who take up affordable housing, gov subsidized housing, social housing projects, etc?
-How do these 3.1million illegals effect the school systems? Are they helping pay for the MASSIVE debt we incur because of them? How? What property taxes are they paying? What state income tax are they paying?
-How are labor rates/wages effected by 3.1 million low skilled workers? Are wages higher because of them?
-How are the other 7-8 million "legal" immigrants effecting low skilled wage rates? How are they effecting enrollment into secondary education? Is secondary education less expensive because they are there? Is it less competitive?


Many of these people are a drain on society and directly effect every single person in that state in either lower wages, higher rent, lower quality education, higher health care costs, etc. The probem is that Cali wants to spread their diseased model, a cancer, to other states and it is doing so by running people out of their state because they can't afford to live there any more, can't take the draconian laws, the totalitarian authority of the local and state governments. Gone are the days when Cali was the "wild west" and people could do as they pleased for the most part, when it was a place where a person could remake themselves and build their dream. Now it seems it is either "adapt and accept OUR form of a socialistic/communistic/totalitarian dream or we will crush you" or try to live under the radar (good luck...) or leave.

I would wish for "the big one" and have Cali slide off under the Pacific and maybe we could all wake up from this never ending nightmare, but unfortunately(or fortunately, depends how you look at it), there are VERY good people there, people fighting for freedom and what is right. If only the Gov could be hit by the big one.

a reply to: DigginFoTroof

As with most everything else, Prices Go Up when you subsidize or have government pay for it.

Look at the example below, they can charge over 3,000 US dollars a month for an apartment rental and Section 8 money picks up over 2K a month for it.

homeguides.sfgate.com...

In order for an individual to qualify for Section 8 subsidies, their income level must be less than 50 percent of the median income level for their county or metropolitan area. For example, given the fact that the median income level in San Francisco is $118,400, an individual would qualify for Section 8 subsidies if they made less than $59,200 per year.

As an example, use the following scenario:

An individual is seeking a two-bedroom apartment in San Francisco. Their income is $32,000, which makes them eligible for Section 8 subsidies. The current payment standard for a two-bedroom apartment in San Francisco is $3,121. The apartment they have found costs $3,000 monthly. Since the price of the unit falls below the payment standard, 30 percent of the individual's income will be used to pay rent. With a monthly income of $2,666.67 ($32,000 / 12), this means that $800 will be paid toward monthly rent. If the price of the rental unit had been over $3,121, then the tenant would be required to pay 40 percent of their monthly income, or $1,066.67, toward their rent on a monthly basis.

a reply to: DigginFoTroof

This is why:

Purchasing Power of the Consumer Dollar

The problems with this country are not rocket science. The lobbyists force the politicians to pass laws creating cartels and monopolies in exchange for campaign financing.

The words of FDR's 1936 speech ring more true today than after the Great Depression:

"An old English judge once said: 'Necessitous men are not free men.' Liberty requires opportunity to make a living - a living decent according to the standard of the time, a living which gives man not only enough to live by, but something to live for.

For too many of us the political equality we once had won was meaningless in the face of economic inequality. A small group had concentrated into their own hands an almost complete control over other people's property, other people's money, other people's labor - other people's lives. For too many of us life was no longer free; liberty no longer real; men could no longer follow the pursuit of happiness.

Against economic tyranny such as this, the American citizen could appeal only to the organized power of government."

Speech before the 1936 Democratic National Convention

same problems as in holland with social houses …
couse ….investors in house markets who raice the rents skyhigh…
just greeeeeed!!!

Greed and weather

Demand drives up value, gov loves it because of property tax.

Bad politicians are driving up material costs and regulation to the point you can't build affordably anymore.

It's clamping down on homebuilders right now.

Welcome to my world.

I'm bringing some alternative building designs to the market now.

Having to re-invent the wheel. Major pita.

a reply to: infolurker

It's funny how on the low end fancy techniques like "median" and "percentages" are use in the benefits. But when it comes to CEO tax rates all of sudden everyone in power becomes math illiterate.

With all the games, it costs 500k more to build a cali house than Texas right now.

originally posted by: Mandroid7
Greed and weather

Demand drives up value, gov loves it because of property tax.

Yeah, with all our computers and fancy automatons we simply are just not capable of meeting people's needs. We just can't produce enough to meet demand. It's a real shame the American economy is so anemic.

a reply to: ressiv

I agree. It really doesn't matter what you pay in taxes. All that matters is the purchasing power of your take home pay. If all your pay goes to rent, gasoline, and healthcare you are a economic slave.

"For too many of us the political equality we once had won was meaningless in the face of economic inequality. A small group had concentrated into their own hands an almost complete control over other people's property, other people's money, other people's labor - other people's lives. For too many of us life was no longer free; liberty no longer real; men could no longer follow the pursuit of happiness. " FDR

originally posted by: dfnj2015
a reply to: infolurker

It's funny how on the low end fancy techniques like "median" and "percentages" are use in the benefits. But when it comes to CEO tax rates all of sudden everyone in power becomes math illiterate.

Could you explain what you mean? I kind of understand what you are saying, but not exactly sure. An example would be great! I think I agree with what you are saying, people dont' analyze CEO pay/spending but will pick over the poor's with a fine tooth comb?

originally posted by: dfnj2015

originally posted by: Mandroid7
Greed and weather

Demand drives up value, gov loves it because of property tax.

Yeah, with all our computers and fancy automatons we simply are just not capable of meeting people's needs. We just can't produce enough to meet demand. It's a real shame the American economy is so anemic.

You can't in California because of environmental regulations. How and where you can build housing is very strictly controlled. That all makes it much more expensive to build, and of course, the more it costs to build a house or living unit, the higher your return rate has to be to make money off of having to build it, so the houses aren't going to be cheap, neither is the rent.

Not to mention, since housing is so strictly controlled, that makes it a scarce good, so that also drives up prices.

a reply to: dfnj2015

It's long past time gov gets to eff out of the market, they have been subverted from their initial purpose of protecting prosperity for citizens into taking all prosperity for control and gibs.

They sold us out.

From factories to income tax, to property tax and regulation(tax), to excess laws and employment disqualification through records

While dipshlitz cry muh party.

Slaughtering small business, now taxing the materials suppliers through tarriffs.

Our country is fd on this path.

Affordable Housing crisis in California - what is the cause of this?

It's too much real estate in the hands of too few people -- same reason housing is so little affordable in other popular destinations. But in fifty years, some areas of California will meet a fate similar to Detroit's. The state won't dominate tech and entertainment forever -- though as long as the winter snow and rain keep returning, the central valley breadbasket economy will continue to thrive.

Personally I would barely notice if San Francisco fell into the sea -- but oh, I do love the East Bay. It's a cultural gem even though I can't afford to relocate there.

originally posted by: DigginFoTroof

originally posted by: dfnj2015
a reply to: infolurker

It's funny how on the low end fancy techniques like "median" and "percentages" are use in the benefits. But when it comes to CEO tax rates all of sudden everyone in power becomes math illiterate.

Could you explain what you mean? I kind of understand what you are saying, but not exactly sure. An example would be great! I think I agree with what you are saying, people dont' analyze CEO pay/spending but will pick over the poor's with a fine tooth comb?

Tax laws or tax tables use static values. As people's wages increase with inflation static tables become skewed. If tax laws were based on percentages and other statistics the laws would not have to be rewritten every 20 years.

We are spending $770 billion on the US military this year. What difference does anything else make.

George Carlin has all this pegged 20 years ago:



There's a reason why....

a reply to: ketsuko

There are no free-markets because of corruption. As I stated, laws are passed to create monopolies and cartels.

originally posted by: Namdru

Affordable Housing crisis in California - what is the cause of this?

It's too much real estate in the hands of too few people -- same reason housing is so little affordable in other popular destinations. But in fifty years, some areas of California will meet a fate similar to Detroit's. The state won't dominate tech and entertainment forever -- though as long as the winter snow and rain keep returning, the central valley breadbasket economy will continue to thrive.

Personally I would barely notice if San Francisco fell into the sea -- but oh, I do love the East Bay. It's a cultural gem even though I can't afford to relocate there.

It is happening in some areas already. I have relatives in Seattle. Real estate used to be really cheap there, then the tech and housing boom. Now it seems people are slowing leaving.

Here are the places I see problems. California obviously. Washington State. Colorado, They have experienced a boom due to pot tourism. As other states legalize there will be no need to visit. Migration out of Illinois has been happening for years, but I think it is going to get much much worse.

originally posted by: dfnj2015
a reply to: ketsuko

There are no free-markets because of corruption. As I stated, laws are passed to create monopolies and cartels.

Yes, but also because people demand laws be passed to protect them from the same. You are complicit in your own hell.

a reply to: DigginFoTroof

Why do you think there's high housing costs?

It's so that they (the banks, government etc..) can keep everyone down and struggling. You see, if costs just stayed the same we would all be millionaires and they don't want that.