Southern California has ‘worst’ cities for affordability
Though he didn’t participate in the Harvard study, Richard K. Green regularly tracks the local rental market as Director of the USC Lusk Center for Real Estate.
He said the standard advice that no more than 30 percent of monthly income should be devoted to rent is simply not realistic for most people here.
“It’s not available for many, many people who live in Southern California,” said Green. “When we look at Los Angeles, Orange County, and San Diego, the way I do the measurements they are three of worst cities in the country for affordability,” said Green.
Green said coastal areas tend to suffer from the double-edged sword of rising rents and falling incomes while further inland the rent hasn’t increased, but incomes have fallen.
Green said raising the minimum wage would help the problem of housing affordability. He also recommends relaxing the rules on housing development.
“In California, we need to figure out how to make it easier to build housing,” said Green.