Factors Driving California Housing Costs

Factors Driving California Housing Costs

Full Report

Executive Summary

Press Release

Fact Sheet

Study Description

Agenda

Overview

The Commission is reviewing the underlying causes of California’s high cost of housing, attempting to determine the driving factors behind rising costs and to identify whether those factors are market-driven, influenced by state policy, influenced by local policy, or by some other cause.

 

Housing has long been more expensive in California than the rest of the country, but beginning in the 1980s, the divergence between the state and the nation became much larger. Today the median cost of a single-family home in California is approximately two-and-a-half times the national median, a difference only partially offset by California’s higher earnings. The result is that California has one of the nation’s lowest home ownership rates, Californians spend a disproportionate share of their income on housing, and the share of crowded housing units has increased. Voters consistently cite housing costs as one of the key issues facing the state.

 

With this study, the Commission will examine the underlying market conditions that have increased housing prices in California, including high demand created by the state’s population growth and higher prices enabled by the state’s highly productive economy. Additionally, the Commission will examine the reasons underlying the relatively slow growth of housing supply in California, as reflected in the state’s slowing rate of new housing permits and generally low stock of housing units as a share of population. The Commission will also examine the variations in housing cost throughout the state, which can help to identify whether the underlying causes are driven by statewide policy or local policy, or by varying economic conditions.

 

Once the driving factors of housing cost have been determined, the Commission will consider whether to continue further study of housing-related policy.

 

If you would like more information regarding this study, please contact Ethan Rarick at ethan.rarick@lhc.ca.gov or at 916-445-2125. To be notified electronically of meetings, events, or when the review is complete, please send a request to littlehoover@lhc.ca.gov. 

Print 
			Agenda
  • January 23
    2020
    Business Meeting
    Noon, State Capitol, Room 125, Sacramento, CA
    Business Meeting
    Agenda

    Business Meeting
    Thursday, January 23, 2020
    State Capitol, Room 125
    Sacramento, CA 

    The Commission will consider agenda items I-VI at approximately noon. The precise time will vary depending upon the testimony of witnesses and will be determined at the discretion of the chair. Members of the public will have an opportunity to make comments about Commission agenda items during the meeting.

    I.      Business Meeting Minutes from October 24, 2019, and November 21, 2019
    II.     Administrative Update
                   a.     Personnel
                   b.     Budget update
    VI.    Project Selection
    III.    Implementation and Impact Activity
    IV.    Reports from the California State Auditor's Office
    V.     Commission Support for Budget Proposals
    VI.    Project Selection
                   a.     Update on project schedule
                   b.     Discussion of future project topics

    Public Notice

    FOR IMMEDIATE RELEASE
    Jan. 13, 2020

    For Additional Information Contact:
    Ethan Rarick, Executive Director
    (916) 445-2125

    Notice of Meetings

    On Thursday, January 23, 2020, the Little Hoover Commission will conduct a public hearing on factors underlying California’s high housing costs. The hearing will begin at 9:30 a.m. in Room 437 of the State Capitol in Sacramento. The hearing will be video recorded, and following the hearing, the link to the archived video will be available on the Commission’s website.

    At approximately 12 p.m., the Commission will hold its business meeting in Room 125 of the State Capitol.

    At approximately 3 p.m., the Commission will make a site visit to My Sister’s Café, at 455 Capitol Mall in Sacramento.

    On Friday, January 24, 2020, the Commission will hold an Advisory Committee meeting as part of its ongoing study on Intimate Partner Violence, beginning at 10 a.m. in the Golden State Room of the Hyatt Regency at 1209 L Street in Sacramento.

    The Commission may act on any item listed on the agendas. Times are approximate and subject to change. Agenda items may be taken out of order to accommodate speakers and to maintain a quorum. The meetings may be cancelled without notice.  

    Members of the public will have the opportunity to comment on any item on the Commission’s hearing, business meeting and Advisory Committee agendas.

    The Commission welcomes written comments on its study topics at any point during the study; please email written comments to littlehoover@lhc.ca.gov. The Commission also welcomes written comments on any item on its business meeting agenda; please email business meeting comments to littlehoover@lhc.ca.gov.

    If you need reasonable accommodation due to a disability, please contact the Little Hoover Commission at (916) 445-2125 or littlehoover@lhc.ca.gov by Monday, Jan. 20, 2020.

  • January 23
    2020
    Factors Driving California Housing Costs
    9:30 a.m., State Capitol, Room 437, Sacramento, CA
    Public Hearing
    Agenda

    Public Hearing on Factors Driving California Housing Costs
    Thursday, January 23, 2020
    State Capitol, Room 437
    Sacramento, CA 95814

    Public Hearing: 9:30 a.m.

    What the Research Shows 

    1. Stuart Gabriel, Professor of Finance and Arden Realty Chair, and Director, UCLA Ziman Center for Real Estate, UCLA Anderson School of Management
    2. David Garcia, Policy Director, Terner Center for Housing Innovation, University of California, Berkeley

     

    Stakeholder Views 

    1. Dan Dunmoyer, President and CEO, California Building Industry Association
    2. Sean McGlynn, City Manager, City of Santa Rosa
    3. Christopher A. Lee, Legislative Representative for Housing, Land Use and Transportation, California State Association of Counties

     

    Public Comments

     

    Public Notice

    FOR IMMEDIATE RELEASE
    Jan. 13, 2020

    For Additional Information Contact:
    Ethan Rarick, Executive Director
    (916) 445-2125

    Notice of Meetings

     

    On Thursday, January 23, 2020, the Little Hoover Commission will conduct a public hearing on factors underlying California’s high housing costs. The hearing will begin at 9:30 a.m. in Room 437 of the State Capitol in Sacramento. The hearing will be video recorded, and following the hearing, the link to the archived video will be available on the Commission’s website.

     

    At approximately 12 p.m., the Commission will hold its business meeting in Room 125 of the State Capitol.

     

    At approximately 3 p.m., the Commission will make a site visit to My Sister’s Café, at 455 Capitol Mall in Sacramento.

     

    On Friday, January 24, 2020, the Commission will hold an Advisory Committee meeting as part of its ongoing study on Intimate Partner Violence, beginning at 10 a.m. in the Golden State Room of the Hyatt Regency at 1209 L Street in Sacramento.

     

    The Commission may act on any item listed on the agendas. Times are approximate and subject to change. Agenda items may be taken out of order to accommodate speakers and to maintain a quorum. The meetings may be cancelled without notice.  

    Members of the public will have the opportunity to comment on any item on the Commission’s hearing, business meeting and Advisory Committee agendas.

     

    The Commission welcomes written comments on its study topics at any point during the study; please email written comments to littlehoover@lhc.ca.gov. The Commission also welcomes written comments on any item on its business meeting agenda; please email business meeting comments to littlehoover@lhc.ca.gov.

     

    If you need reasonable accommodation due to a disability, please contact the Little Hoover Commission at (916) 445-2125 or littlehoover@lhc.ca.gov by Monday, Jan. 20, 2020.

    Video
Print 
		Agenda
  • January 23
    2020
    Business Meeting
    Noon, State Capitol, Room 125, Sacramento, CA
    Business Meeting
    Agenda

    Business Meeting
    Thursday, January 23, 2020
    State Capitol, Room 125
    Sacramento, CA 

    The Commission will consider agenda items I-VI at approximately noon. The precise time will vary depending upon the testimony of witnesses and will be determined at the discretion of the chair. Members of the public will have an opportunity to make comments about Commission agenda items during the meeting.

    I.      Business Meeting Minutes from October 24, 2019, and November 21, 2019
    II.     Administrative Update
                   a.     Personnel
                   b.     Budget update
    VI.    Project Selection
    III.    Implementation and Impact Activity
    IV.    Reports from the California State Auditor's Office
    V.     Commission Support for Budget Proposals
    VI.    Project Selection
                   a.     Update on project schedule
                   b.     Discussion of future project topics

    Public Notice

    FOR IMMEDIATE RELEASE
    Jan. 13, 2020

    For Additional Information Contact:
    Ethan Rarick, Executive Director
    (916) 445-2125

    Notice of Meetings

    On Thursday, January 23, 2020, the Little Hoover Commission will conduct a public hearing on factors underlying California’s high housing costs. The hearing will begin at 9:30 a.m. in Room 437 of the State Capitol in Sacramento. The hearing will be video recorded, and following the hearing, the link to the archived video will be available on the Commission’s website.

    At approximately 12 p.m., the Commission will hold its business meeting in Room 125 of the State Capitol.

    At approximately 3 p.m., the Commission will make a site visit to My Sister’s Café, at 455 Capitol Mall in Sacramento.

    On Friday, January 24, 2020, the Commission will hold an Advisory Committee meeting as part of its ongoing study on Intimate Partner Violence, beginning at 10 a.m. in the Golden State Room of the Hyatt Regency at 1209 L Street in Sacramento.

    The Commission may act on any item listed on the agendas. Times are approximate and subject to change. Agenda items may be taken out of order to accommodate speakers and to maintain a quorum. The meetings may be cancelled without notice.  

    Members of the public will have the opportunity to comment on any item on the Commission’s hearing, business meeting and Advisory Committee agendas.

    The Commission welcomes written comments on its study topics at any point during the study; please email written comments to littlehoover@lhc.ca.gov. The Commission also welcomes written comments on any item on its business meeting agenda; please email business meeting comments to littlehoover@lhc.ca.gov.

    If you need reasonable accommodation due to a disability, please contact the Little Hoover Commission at (916) 445-2125 or littlehoover@lhc.ca.gov by Monday, Jan. 20, 2020.

  • January 23
    2020
    Factors Driving California Housing Costs
    9:30 a.m., State Capitol, Room 437, Sacramento, CA
    Public Hearing
    Agenda

    Public Hearing on Factors Driving California Housing Costs
    Thursday, January 23, 2020
    State Capitol, Room 437
    Sacramento, CA 95814

    Public Hearing: 9:30 a.m.

    What the Research Shows 

    1. Stuart Gabriel, Professor of Finance and Arden Realty Chair, and Director, UCLA Ziman Center for Real Estate, UCLA Anderson School of Management
    2. David Garcia, Policy Director, Terner Center for Housing Innovation, University of California, Berkeley

     

    Stakeholder Views 

    1. Dan Dunmoyer, President and CEO, California Building Industry Association
    2. Sean McGlynn, City Manager, City of Santa Rosa
    3. Christopher A. Lee, Legislative Representative for Housing, Land Use and Transportation, California State Association of Counties

     

    Public Comments

     

    Public Notice

    FOR IMMEDIATE RELEASE
    Jan. 13, 2020

    For Additional Information Contact:
    Ethan Rarick, Executive Director
    (916) 445-2125

    Notice of Meetings

     

    On Thursday, January 23, 2020, the Little Hoover Commission will conduct a public hearing on factors underlying California’s high housing costs. The hearing will begin at 9:30 a.m. in Room 437 of the State Capitol in Sacramento. The hearing will be video recorded, and following the hearing, the link to the archived video will be available on the Commission’s website.

     

    At approximately 12 p.m., the Commission will hold its business meeting in Room 125 of the State Capitol.

     

    At approximately 3 p.m., the Commission will make a site visit to My Sister’s Café, at 455 Capitol Mall in Sacramento.

     

    On Friday, January 24, 2020, the Commission will hold an Advisory Committee meeting as part of its ongoing study on Intimate Partner Violence, beginning at 10 a.m. in the Golden State Room of the Hyatt Regency at 1209 L Street in Sacramento.

     

    The Commission may act on any item listed on the agendas. Times are approximate and subject to change. Agenda items may be taken out of order to accommodate speakers and to maintain a quorum. The meetings may be cancelled without notice.  

    Members of the public will have the opportunity to comment on any item on the Commission’s hearing, business meeting and Advisory Committee agendas.

     

    The Commission welcomes written comments on its study topics at any point during the study; please email written comments to littlehoover@lhc.ca.gov. The Commission also welcomes written comments on any item on its business meeting agenda; please email business meeting comments to littlehoover@lhc.ca.gov.

     

    If you need reasonable accommodation due to a disability, please contact the Little Hoover Commission at (916) 445-2125 or littlehoover@lhc.ca.gov by Monday, Jan. 20, 2020.

    Video