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Richie Alan Naggar, agent & author  (people first...then business Ran Right Realty )

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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Of course, the taxpayers pay for that. We pay for everything in one form or another - don't we? 
The next gen waits to inherit their riches. 

Aug 20, 2022 02:26 PM
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Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

It's a bad circle of events. I have no solutions.

Aug 20, 2022 01:29 PM
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Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Well, we have not felt the low inventory as much as we did the last 4 - 5 years, and local government in CA does incentivize builders with fast tracking permits and tax breaks etc. if they include a % of affordable housing in CA. I've witnessed this first hand in both The Bay Area and San Diego, where there are in fact certain portions of to full projects where you have to make "less than income" to qualify to buy. 

Aug 21, 2022 06:52 AM
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

The taxpayers pay and politicians spend. The problem is they don’t spend it on the right things because it is not their money. No easy fix for the swamp

Aug 21, 2022 04:21 AM
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Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Supply and demand and a free market economy WITHOUT GOVERNMENT INTERFERENCE will solve this, as it always has.  Anytime the government gets involved with quotas or rent caps it drives landlords or builders out of the market or to areas (or states) without these, which drive the prices up. 

Raising the wages, like the lunacy of the $15 minimum wage job, only furthers the problem.  The costs of goods and services sold where minimum wages are earned now has to go up, which then causes everything up and down the supply chain to increase.  Your burger at McHeartAttack will increase in cost, so will the fries and shake.  You'll need to start earning more in order to afford that, which then will cause the price of goods and services where you work to go up, which then forces this at other companies, and (over time) cause wages to rise to a point where the $15/h minimum is back to the equivalent of $7.  Then some politician who wants to buy more votes flaps their gums about raising it to $20/h and the whole process begins again.

 

Subsidies just increase the costs.  If you subsidize a burger and all hamburger joints know this and see a large portion of purchases being subsidized, they know they can raise the cost of that burger and get more money without risking much of their customer base.  Unless, like with Section 8, restaurants have to go through inspections and lengthy approval processes to be allowed to serve a burger to a subsidized buyer, then that will just have restaurants selling their limited supply of burgers strictly to people who can pay with cash or card... which is what happens in the housing market.  Why take two months to get your home approved for Section 8, when you can rent it tomorrow to a non-subsidized tenant?

 

The next gen needs to learn the real history and tell their leaders to stop meddling. It will take time, as all things do, but the market will correct itself.  Right now with rapid inflation and the government printing money like it's going out of style, rents are expected (per a recent survey of landlords nationally) to go up again next year.

The next gen and the current gen also needs to adjust their thinking.  Minimum wage jobs are an entry level position, not a career position.  If you're only worth the bare minimum to society, you don't get to buy a home or rent one in Beverly Hills.  So many parents want their kids to live where they do and they simply don't have the degrees or skills to afford it.  I couldn't afford it until I bettered myself by getting a Master's Degree in Computer Science and left my secure job in an entry level part of IT (tech support) to take a risky 6 month internship with no guarantee of employment thereafter in a portion of IT that was more important and worth more to a company, Information Security.  After that some time there, I was able to "write my ticket" and easily get a six-figure stable job and buy several homes.

Aug 21, 2022 09:12 AM
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Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

The cost per unit here in the Sacramento area is between 80k and 100k for soft costs.  How do you buy land, pay for hard costs and include those kind of soft costs and end up with affordable housing?  And what about the permitting process itself?  I have invested in a small infill project and it has taken over 2 years to go through the process and the builder is still working on it.  I really do not know how you fix it.  It would take a whole lot of subsidizing and stream lining to make it work.

Aug 21, 2022 07:52 AM
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Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

RENTS! At least until they can afford Richie Alan Naggar . As you know, markets change.

Aug 21, 2022 06:21 AM
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John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

As a California Realtor, Richie Alan Naggar, you are well aware of the attempts to bring more affordable housing to the local markets. Nimbyism and cost are two very difficult factors to overcome. 

Aug 21, 2022 08:10 AM
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Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

There is no answer to the issue. Truly affordable housing is practically nonexistent and rents have skyrocketed only exacerbating the issue

Aug 21, 2022 07:54 AM
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Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

What Ryan Huggins - Thousand Oaks, CA said!!!

Aug 22, 2022 06:14 PM
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Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

I used to think that every fairy tale started with "once upon a time"  now it begins with "if I am elected, I promise"

Aug 22, 2022 07:58 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

People need to learn to live within their means, not everyone needs a new home, sometimes an old shabby home is the best fit for them and their paycheck.

Aug 22, 2022 12:25 AM