Builders Patch | HousingCount: California affordable housing data and latest news
California
Summary
California state is facing an acute affordable housing crisis. For every 100 low-income renter households, there are 44 units available that are affordable to them. The median rent in the state has risen by 48% since 2010, while median household incomes have grown by 47%. Currently, the state is short over 854,839 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.
44.5%
share of renter households
41.0%
share of low-income households
51.5%
share of rent-burdened households
Renter population data
Renters vs homeowners
| Households | % share |
|---|---|
| Renter households | 5,882,339 |
| Homeowner households | 7,335,247 |
| Total households | 13,217,586 |
| Low-income renter households | % share |
|---|---|
| Extremely low-income (≤30% AMI) | 892,433 |
| Very low-income (31-50% AMI) | 639,205 |
| Low-income (51-80% AMI) | 877,565 |
| All low-income households (<80% AMI) | 2,409,203 |
Rent-burdened households
| Share of income spent on rent | Households | % share |
|---|---|---|
| Moderately rent-burdened | 1,482,173 | 25.2% |
| 30.0–34.9% | 527,598 | 9.0% |
| 35.0–39.9% | 393,196 | 6.7% |
| 40.0-49.9% | 561,379 | 9.5% |
| Severely rent-burdened | 1,548,761 | 26.3% |
| ≥50.0% | 1,548,761 | 26.3% |
| All rent-burdened households | 3,030,934 | 51.5% |
Affordable housing shortage
| Median household income | Amount ($) |
|---|---|
| in 2010 | 40,492 |
| in 2021 | 59,530 |
| Increase (2010–2021) | 47.0% |
| Median rent | Amount ($) |
|---|---|
| in 2010 | 1,044 |
| in 2021 | 1,547 |
| Increase (2010–2021) | 48.2% |
| Supply, demand & shortage | Units |
|---|---|
| Supply (current stock) | 676,799 |
| Demand (total units needed) | 1,531,638 |
| Shortage | 854,839 |
| Total shortage | 854,839 |
| Supply/demand ratio | 44.2% |
Finance institutions
California Housing Finance Agency
California Housing Finance Agency
500 Capitol Mall, Suite 1400
Sacramento, CA 95814-4737
QAP document (Qualified Allocation Plan)
QAP
The QAP is a document that states, and a few local agencies, must develop in order to distribute federal Low Income Housing Tax Credits (LIHTCs), which can be awarded only to a building that fits the QAP’s priorities and criteria. Each QAP must spell out a housing finance agency’s (HFA’s) priorities and specify the criteria it will use to select projects competing for tax credits. The priorities must be appropriate to local conditions.
Housing news
September 19, 2024
How Fed Rate Cuts Impact the Housing Market
The Federal Reserve’s recent rate cuts will influence the housing market, but the effects won't be immediate. Although lower rates make borrowing more affordable, the ongoing housing shortage and existing conditions in the market remain tough obstacles.
Key Takeaways:
- Lower Mortgage Rates: Fed rate cuts have already reduced the average 30-year mortgage rate, which dropped from a peak of 7.79% in late 2023 to around 6.2%. This could ease the burden for homebuyers and those refinancing.
- Home Sales: As rates decline, more homeowners might be encouraged to sell, which could help alleviate some of the housing market’s stagnation. However, a full recovery of the resale market is expected to be gradual.
- Ongoing Supply Issues: Despite lower rates, housing supply shortages will persist, especially in high-demand areas. Supply constraints, driven by zoning restrictions and labor/material shortages, remain a barrier to affordability.
While the Fed’s actions are a positive step toward stabilizing the housing market, broader structural challenges—particularly the lack of new housing supply—will continue to affect the market.
Key Housing Reports
- The housing market won't recover until at least 2026, with home affordability improving only with a recession.
- In 2023, the number of homeless individuals in the U.S. reached approximately 653,000, representing a significant 12% increase since 2020.
- The worsening housing affordability crisis has soared to a 10-year high, impacting 63% of counties.
- Homelessness is rising, increasingly affecting the employed individuals unable to afford housing due to high rents.
Shortage statistics for ELI & VLI renters
List of counties
| Name | Households | % share | Households | % share | Households | % share | Shortage of units | S&D ratio |
|---|---|---|---|---|---|---|---|---|
| Alameda County | 268,273 | 46.1% | 85,071 | 31.7% | 124,717 | 46.5% | 70,964 | 2.8% |
| Alpine County | 79 | 18.2% | 27 | 34.2% | 8 | 10.1% | -22,347 | 151594.7% |
| Amador County | 3,319 | 21.6% | 960 | 28.9% | 1,420 | 42.8% | 857 | 6.0% |
| Butte County | 35,743 | 41.9% | 8,678 | 24.3% | 18,798 | 52.6% | 8,081 | 7.3% |
| Calaveras County | 3,111 | 18.5% | 892 | 28.7% | 1,667 | 53.6% | -4,454 | 997.1% |
... (continued for other counties)