California Housing Costs Skyrocket 🚨

The cost of owning an entry-level home in California has surged by 88% since 2020, driven by rising home prices, higher mortgage rates, and ongoing wildfires. According to a report by the Legislative Analyst’s Office:

🏠 Entry-level homes now cost over $3,500/month in mortgage payments.

🔥 Wildfires have destroyed over 12,000 buildings, mostly in wealthier areas, pushing prices higher as displaced families seek housing.

📈 Mortgage rates jumped from 3% (2020) to 7% (2024), making homeownership less affordable and limiting the number of homes for sale.

Key Impact:

🏗️ New housing development is slowing down, with Los Angeles permitting fewer homes each year.

💸 High interest rates and transfer taxes are discouraging developers from starting new projects.

California’s tight housing market faces increasing challenges, leaving many priced out.