Californians Face a Housing Conundrum: New Golden State Poll
Source: Yahoo! Finance
The Hoover Institution at Stanford University has released the results of its new poll, which finds that
Golden State residents are concerned about younger generations being able to meet the demands of
exorbitant housing prices, and the ability of low- and middle-income residents to claim their piece of the
California Dream while being priced out of where they currently live.
Making sense of the story

Sixty-nine percent of respondents consider California’s housing market to be very or somewhat
expensive for the housing you get, with Bay Area residents the most likely to express this view
(78 percent).

Fifty-five percent of respondents consider the housing market they currently live in to be very or
somewhat competitive. Fifty-two percent of Bay Area Californians consider their housing market
very competitive compared to just 15 percent of those who live in the Central Valley.

Forty-six percent of respondents had considered moving because of the cost of housing, including
59 percent of those under 30 years old, 57 percent of those who rent, and 50 percent of lowincome Californians.

Among the concerns about the cost of purchasing a home, 28 percent of respondents identified
the struggle of younger generations to own a home as their top concern, with similar opinions
from across the Bay Area, Central Valley, and Southern California.

Hoover research fellow Bill Whalen commented, “Of the abundant challenges facing California,
few are as troublesome as the ability to find quality, affordable housing. As our survey results
show, the concern is uniform regardless of age, geography, or outlook. Californians look at the
rising costs and dearth of attainable housing and worry that future generations won’t be able to
lay down roots in the Golden State.”

With respect to local government policies, greater rent control had more support (47 percent
strongly or somewhat support) than relaxing open space requirements (36 percent) and changing
zoning laws (38 percent).

As for state government policies, subsidizing public transit (54 percent strongly or somewhat
support) beat out reforming CEQA (32 percent) and increasing the renters’ tax credit (40
percent).
Read the full story
http://finance.yahoo.com/news/hoover-institution-golden-state-poll-140000692.html
In other news …
An About-Face for McMansions
Source: Wall St. Journal
There was a first-quarter record high in the median size of newly built, single-family homes. But was that
just a statistical blip? Given trends in the broader housing market, including construction of a greater
number of smaller, affordable homes, many economists argue that is the case. Robert Dietz, an economist
with the National Association of Home Builders, posits that last quarter’s increase in the median size of a
home built in the U.S is due more to a smaller amount of housing construction in the first quarter relative
to previous quarters than to a return to a market focused on mega-homes.
Read the full story
http://blogs.wsj.com/economics/2015/05/19/an-about-face-for-mcmansions/
Consumer Information: Beware Rental Listing Scams
Source: Federal Trade Commission
Moving to a new city? Planning a vacation? As you consider issues like size, cost, and location of a place
to rent, it’s important to consider whether that rental listing could be a scam. Scammers often advertise
rentals that don’t exist or aren’t available in order to trick people into sending money before they find out
the truth. For instance, some scammers hijack a real rental or real estate listing by changing the email
address or other contact information, and placing the modified ad on another site. The surest sign of a
scam is if you are asked to wire money.
Read the full story
https://www.consumer.ftc.gov/articles/0079-rental-listing-scams
The Urban Housing Crunch Costs the U.S. Economy About $1.6 Trillion
a Year
Source: The Atlantic
According to new analysis from economists, a lack of affordable housing options in major cities like New
York, San Francisco, and San Jose (home of Silicon Valley) costs the U.S. economy about $1.6 trillion a
year in lost wages and productivity. To reach their conclusion, the economists evaluated what might
happen if workers were free to move to the cities and metros with the most robust economies, where they
could be most productive, thus fueling even greater productivity and growth for the U.S. economy as a
whole. Their estimates provide a stark reminder of the very real hit the U.S. economy takes every year
because of its inefficient and suboptimal spatial structure.
Read the full story
http://www.citylab.com/housing/2015/05/the-urban-housing-crunch-costs-the-us-economy-about-16trillion-a-year/393515/?utm_source=nl_daily_link1_051815
Drought: The psychology of why some people aren't saving water
Source: KPCC
The vast majority of Californians think the state’s current drought is a serious problem, but many say they
can't do more to save water, according to the results of a new Field Poll. While nearly two-thirds of those
polled agreed that water agencies should be forced to cut back consumption, 44 percent said it would be
hard for them personally to make more of a sacrifice. This reflects research from social scientists, which
shows that when humans are faced with massive challenges, they often feel their individual actions won’t
make a difference.
Read the full story
http://www.scpr.org/news/2015/05/19/51822/drought-the-psychology-of-why-some-people-aren-t-s/
Minimum Wage in U.S. Cities Not Enough to Afford Rent, Report Says
Source: Wall St. Journal
There is a wide gap between stagnant incomes and rising rents in many parts of the country, according to
the report released by the National Low Income Housing Coalition. Around the country, renter
households would need to make $19.35 an hour working full time to afford a two-bedroom unit, which is
$4 more than the estimated average wage of U.S. workers. A San Francisco household would need to
make $39.65 an hour to afford the market rent for a two-bedroom apartment. There is no state in the
country where someone earning either the state or federal minimum wage can afford a market-rate onebedroom apartment.
Read the full story
http://blogs.wsj.com/economics/2015/05/19/report-minimum-wage-in-u-s-cities-not-enough-to-affordrent/
Freddie Mac: Rising rents aren’t pushing residents to homeownership
Source: HousingWire
A new survey from Freddie Mac and Harris Poll found that rising rents do not appear to be playing a
significant role in motivating renters to buy a home. Of those who experienced a rent increase, 70 percent
agreed they would like to buy a home but cannot afford to at this point. Despite increases to their rent, 53
percent say they are making no changes to their spending plans and 46 percent say they like where they
live and will stay in their current place. According to Freddie Mac, rising rents are primarily a sign of
increased demand rather than a signal that home purchases will be increasing. An estimated 440,000 new
apartment units are needed each year to keep up with demand.
Read the full story
http://www.housingwire.com/articles/33932-freddie-mac-rising-rents-arent-pushing-residents-tohomeownership
Talking Points …

California’s housing market accelerated in April as the spring home-buying season kicked off
with both higher home sales and prices for the third straight month, according to the
CALIFORNIA ASSOCIATION OF REALTORS®.

Home sales rose above the 400,000 mark in April for the first time since October 2013 to post the
highest level since August 2013. The April figure was 9.2 percent higher than the revised 391,440
homes sold in March. Home sales were up 9.3 percent from a revised 391,330 in April a year ago,
and the increase was the highest year-over-year change since May 2012.

The median price of an existing, single-family detached California home increased in April from
both the previous month and year for the third consecutive month. The median home price was up
2.8 percent from $468,550 in March to $481,760 in April, the highest level since November 2007.
April’s median price was 7.4 percent higher than the revised $448,720 recorded in April 2014.