Three new studies from nonprofit Next 10 forecast a potential economic crisis in California, stemming from its housing crisis. The research says the shortage of affordable housing is curtailing growth, and damaging the environment and the state's economy.
Inflation, slow wage growth, and the shortage of affordable and accessible housing have combined into a compelling force behind out-migration from the Golden State. According to Curbed, more than 180,200 of the state's lower-income workers left between 2006 and 2016. Founder of Next 10, F. Noel Perry, says, “I don’t think there’s any silver bullet," adding that the question of how California will sustain its economic growth is looming larger as the housing crisis deepens.
The new series of briefs, entitled “Growth Amid Dysfunction: An Analysis of Trends in Housing, Migration and Employment,” paint a picture of a state with both significant economic growth and heavy burdens, housing is at the center of nearly every issue. Research finds that across the state, the shortage of affordable and accessible housing is restricting growth, inflicting economic and environmental damage, and causing many low-income and middle-class residents to seek opportunities elsewhere.
