Ca has a lot of missing never built units. Basically big developers have downsized or left the state because it takes so long to build compared to Texas or Florida, and has a lot more risk. Bruce Norris has mentioned this in his presentations. He moved his portfolio from Ca to Fl due to his inability to forecast Ca’s government’s actions, and its impact on the real estate market.
Ca now has rent control, and it may get worse. This will be impacting multifamily construction,
Ca laws for landlords are getting worse, and some cities are nightmares for landlords (sf, la, Oakland come to mind).
For multi family the only thing that is being built is higher end units. Class A. Due to environmental, zoning, building codes, without subsidies the lower end stuff does not pencil out. So there is a shortage of class c and d apartments.
Homeless are everywhere, unfortunately. As is the urban shoplifting. I see this in Riverside, oc, and of course La county.
Landlords are generally scum anyway, particularly large corporate entities. There are many reasons for homelessness and ridiculous rental and housing problems in California. Renters need to organize and form tenants unions. They also need lobbies just as landlords have had for decades such as The California Homeowners Association.
In California small scale scum landlords don’t last long. Landlords have a huge legal target on their back, and upsetting tenants is the easiest way to get sued. And per a lawyer at a presentation I heard, it’s preferable to gargle hot tar to being sued. It saves money to treat your tenants with respect, provide clean housing, and at a reasonable price. Tenants can easily move and the damage potential they can do is huge.
The amount of legal protections tenants have in Ca, and especially in some cities is beyond belief.
High rents are due to a lack of supply.
Another issue is cheap housing gets torn down due to redevelopment. Mobile home parks are in disfavor in California. So are manufactured homes.
Cities have changed zoning so it’s hard to build a small multi family. They are seen as less desirable.
Bullshit. Any blood sucking parasite that can afford to sink a few million and up to purchase an apartment complex in urban California. Isn’t some ‘struggling mom and pop boomer couple’ subsidizing their paltry social security benefits with rental income. I don’t know what planet you reside on but I live in The Bay Area (not in the city of San Francisco) and landlords get away with all kinds of shit especially with seniors and others in fixed incomes. I’m not a Maoist but am beginning to think he had the right idea about landlords. Zoning and other regulations are a serious issue which has affected housing costs and severely constrained the supply of affordable housing, this is true. The twin blows of mass immigration and neoliberal economic policies, ‘free trade,’ deindustrialization, financialization and the expansion of low wage service sector jobs have all contributed to this problem. Contrary to your assertion, renters don’t have enough rights nor a powerful lobby in Sacramento enjoyed by landlords and their friends.
Can’t say I shed many tears for wealthy homeowners or commercial real estate conglomerates. They are more of a problem economically and socially in California than so-called ‘riff-raff.’
Good analysis.
I would add:
Ca has a lot of missing never built units. Basically big developers have downsized or left the state because it takes so long to build compared to Texas or Florida, and has a lot more risk. Bruce Norris has mentioned this in his presentations. He moved his portfolio from Ca to Fl due to his inability to forecast Ca’s government’s actions, and its impact on the real estate market.
Ca now has rent control, and it may get worse. This will be impacting multifamily construction,
Ca laws for landlords are getting worse, and some cities are nightmares for landlords (sf, la, Oakland come to mind).
For multi family the only thing that is being built is higher end units. Class A. Due to environmental, zoning, building codes, without subsidies the lower end stuff does not pencil out. So there is a shortage of class c and d apartments.
Homeless are everywhere, unfortunately. As is the urban shoplifting. I see this in Riverside, oc, and of course La county.
Landlords are generally scum anyway, particularly large corporate entities. There are many reasons for homelessness and ridiculous rental and housing problems in California. Renters need to organize and form tenants unions. They also need lobbies just as landlords have had for decades such as The California Homeowners Association.
Most landlords only own a unit or two.
In California small scale scum landlords don’t last long. Landlords have a huge legal target on their back, and upsetting tenants is the easiest way to get sued. And per a lawyer at a presentation I heard, it’s preferable to gargle hot tar to being sued. It saves money to treat your tenants with respect, provide clean housing, and at a reasonable price. Tenants can easily move and the damage potential they can do is huge.
The amount of legal protections tenants have in Ca, and especially in some cities is beyond belief.
High rents are due to a lack of supply.
Another issue is cheap housing gets torn down due to redevelopment. Mobile home parks are in disfavor in California. So are manufactured homes.
Cities have changed zoning so it’s hard to build a small multi family. They are seen as less desirable.
Bullshit. Any blood sucking parasite that can afford to sink a few million and up to purchase an apartment complex in urban California. Isn’t some ‘struggling mom and pop boomer couple’ subsidizing their paltry social security benefits with rental income. I don’t know what planet you reside on but I live in The Bay Area (not in the city of San Francisco) and landlords get away with all kinds of shit especially with seniors and others in fixed incomes. I’m not a Maoist but am beginning to think he had the right idea about landlords. Zoning and other regulations are a serious issue which has affected housing costs and severely constrained the supply of affordable housing, this is true. The twin blows of mass immigration and neoliberal economic policies, ‘free trade,’ deindustrialization, financialization and the expansion of low wage service sector jobs have all contributed to this problem. Contrary to your assertion, renters don’t have enough rights nor a powerful lobby in Sacramento enjoyed by landlords and their friends.
Can’t say I shed many tears for wealthy homeowners or commercial real estate conglomerates. They are more of a problem economically and socially in California than so-called ‘riff-raff.’