Expert Explains Why Low Unemployment Numbers Means Higher Home Prices
Sharon Reardon, KABC News
The high cost of buying a home isn’t going down anytime soon in Southern California. The cost of a typical home in the San Fernando Valley is now at $700K, shattering previous records. The median price of a home in Orange County is $785K and $580 in Los Angeles County.
For many, the great American dream of home ownership is just that….a dream.
Dr. Richard Green, Chairman of the USC Lusk Center for Real Estate explains why the cost of Southland real estate is unlikely to go down anytime soon.
“The fundamental problem is we’ve had robust job growth in California and particularly here in Southern California, unemployment in LA County is near its all time low and we haven’t built remotely enough housing to reflect that economic change. You know, a good rule of thumb is you should be building one house for every job or job and half created and it’s more like we’ve had 7 or 8 jobs created for every house we’ve built. ”
Lusk was a guest on McIntyre in the Morning.
The original article can be found here.