CALIFORNIA’S HIGH COST OF HOUSING:
Cost and Consequences to the Economy
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alifornia is one of the most popular spots for real estate investments in the United States. Housing investors have maximized their profits countless times in the property market due to the rapid rising costs. Despite how thriving the housing market is in the state and how much money it has put into the pockets of investors, it remains the state with t highest poverty rate when it comes to family resources vs housing costs and prices of necessities like food.
Of course, a lot of people sought houses that were bigger than their previous homes for more office spaces and playing ground for their children. However, this factor isn’t enough to justify the rising cost of houses in California. Besides, houses have always been expensive in the state, so only the pandemic can’t take the fall. 14 l
THE POWER IS NOW MAGAZINE | NOVEMBER 2021
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While measures from the state and federal governments, such as rent relief and evictions moratorium have provided some sort of respite to many families, the high housing cost makes it even harder to alleviate lack in the longer run. Home prices skyrocketed during the pandemic-recession era, which came as a slight surprise, considering the lockdown and the shutdown of many government establishments to curb the spread.