Housing Demand in California, Orange County Continue to Outpace Supply
Orange County would have to build 7,000 new homes per year in order to make housing more affordable, according to a recent report from the state’s Legislative Analyst’s Office.
A CoreLogic DataQuick report released Tuesday revealed that the median price of an Orange County home climbed to a record high of $909,000 in February. But with demand far outpacing supply, prices show no immediate signs of letting up.
Across the state, new homebuilding would need to increase by 100,000 per year in order to bring prices in line, according to the Legislative Analyst’s Office.
The report notes that high housing costs are one of the most critical economic issues facing the state. However, a number of factors—including land constraints, high building costs, and the state’s tax system—hamper construction of new single-family homes.
State analyst Brian Uhler said legal reforms affecting environmental and governmental reviews or a redistribution of the state’s sales and property tax revenue could provide some solutions to the problem.
“If we really want to make serious progress on the housing cost front, we really have to make changes in many or all of those areas,” Uhler added.
Read more about the recent report here.