There are some very strange things going on in the world today. California has lost 600,000 people in the last few years. A 2023 headline reads, “California Population Declines Again.” Another headline reads, “Many Californians want to leave due to high costs.” In 2018-2022, California spent $17.5 billion combating homelessness. The state's homeless population grew.
According to the L.A. Times, rents have eased, and apartments are vacant. Yet millions are priced out of home ownership. California lost 677,000 units renting for $1,000-$1,399 dollars. In other words, the problem does not appear to be housing, it appears to be affordable housing.
One must ask, why are housing prices rising as population declines, and the availability of rentals and vacancies increase? Under supply and demand that should not be happening. Market-rate housing is not affordable housing, and market-rate housing will not provide affordable housing for workers earning low to moderate incomes.