Supply and Demand Rule O.C. Housing
A large demand and a small supply continue to further complicate the housing market…especially in Orange County.
- According to the state Legislative Analyst’s Office, Orange County needs to build 7,000 more homes this year than it is currently building in order to meet the demand for housing
- The median price for new construction has skyrocketed to an all-time high of $909,000, thanks to homebuilders leveraging the insatiable demand
- This supply and demand makes even the least expensive housing in California more costly than most—with median home prices double that of the national average
- With Californians spending an average of 27% of their income on housing (4% higher than the national average), these growing housing costs contribute to poverty and residents being four times more likely to live in crowded conditions
While these facts are a hard pill to swallow for most Californians, the truth is that there are land constraints which prevent a rapid increase in affordable housing options as well as a voracious demand from those who need to live close to their jobs. Until we get these two spectrums aligned, the state’s economy may falter as extreme housing costs make it harder for companies to recruit and retain top notch employees.