California Needs 1.8 Million Homes to Meet Demand

 

krishen iyer
Krishen Iyer

The former owner of Iyer Health Shield, Krishen Iyer serves as owner and operator of Iyer Real Estate, LLC, located in Fresno, California. A real estate developer, Krishen Iyer is focused on meeting his home state’s strong demand for housing.

California is facing a housing crisis; it simply isn’t building enough homes to meet demand. According to a report by the state’s Department of Housing and Community Development titled “California’s Housing Future: Challenges and Opportunities,” ever since the 2008 market crash California has been building too few homes. In recent years, its population has continued to grow by more than 300,000 a year. In fact, it is estimated that by 2025, the state’s population will have grown by 3.4 million.

To house its increasing population, California will have to build 1.8 million homes by 2025, or about 180,000 homes a year, going back to 2015. Unfortunately, over the last two years, only an estimated 80,000 homes have been built annually. This fact, coupled with the high cost of housing, has seen home ownership in the state fall to its lowest level since the 1940s.

The report recommends certain actions to improve housing development and homeownership in the state. These include reforming land policies to promote sustainable and affordable use, addressing the housing access needs of vulnerable populations, providing home development assistance to the state’s real estate developers, and offering homeownership assistance to residents.

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