Rising home prices coupled with a booming U.S economy have introduced fresh sets of problems to the Californian real estate market. The real estate veteran, Nick Vertucci foresees an imminent housing crisis in the Golden State unless the relevant authorities intervene immediately.
Millennials in Trouble
Nick Vertucci notes that in the last five years alone, home prices appreciated by over 75% in places like San Diego, San José, and Los Angeles. A huge percentage of Millennials have effectively been locked out of the home’s market. The RV’s lining the cities are clear indicators of the massive housing problem in the state. Most young professionals prefer to live outside the metropolis to save on rent.
California’s Economic Indicators
Nick Vertucci believes that unless something gives California is headed for a severe housing market correction. California is a place of great contrasts. On one side, California leads in tax revenue collection. It has the highest per capita income ($29,606K) and jobs are in plenty. Something must be seriously off as the state also has the highest adjusted poverty rate in the US.
Finding Lasting Solutions
The slow pace of the housing projects arises from a lack of sound planning by the developers. For instance, you find buildings having fewer units than stipulated by the zoning laws. That effectively ties up vital developmental land for decades. Additionally, you find companies commissioning offices but, failing to erect housing for their employees.
In a bid to find a lasting housing solution, politicians, led by the Governor, Jerry Brown passed a crucial bill to stimulate housing development. Under the new bill, the final approval for all development projects in Sacramento lies with the state and not with the municipal groups and local government.
Local community groups, city planners, and mayors have voiced their opposition to the new bill. Under the legislation, big developers are exempted from adhering to the strict environmental, procedural and zoning rules. Politicians find themselves in a quagmire of sorts. On one side, if the leaders fail to listen to the voters, they might find themselves out of a job. But, without business-friendly laws, development will stagnate as investors flee to other states.
About Nick Vertucci
Nick Vertucci is a prolific American realtor and investor. Nick lost a fortune when the dot-com bubble finally burst. Nick didn’t despair. He went on to start afresh and build an empire worth millions of dollars. The seasoned realtor is passionate about empowering future generations of entrepreneurs. Nick uses his NV Real Estate Academy to impart his skills and wisdom to aspiring realtors. Since 2013, Nick’s NV Academy has helped countless entrepreneurs to meet their dreams and aspirations. http://nvrealestateacademy.com/education/