California would need 20-percent more housing stock to achieve a 10-percent reduction in price, wrote Jerry Nickelsburg, one of the economists who prepared the latest quarterly UCLA Anderson Forecast, adding that making housing affordable in the Golden State is difficult at best.
That finding also holds true for the Bay Area where another analysis of housing data by The Mercury News indicated that at the current rate of building in Santa Clara County, the East Bay and the San Francisco-San Mateo regions, it would take 14 to 36 years before supply could even modestly roll back housing prices.
“Our inattention to building enough homes has led to disastrously high housing costs for everyone,” said Carl Guardino, president of the Silicon Valley Leadership Group, a public policy trade association that represents businesses. “This is not going to be solved in a day or even a year, or even a few years. This literally has been decades of California not preparing the state for Californians.”
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