The Collected Works of Author and Blogger Larry Roberts

Archive for January, 2016

Since affordable housing is opposed to the interest of existing homeowners, policies which would truly improve affordability are shunned in favor of ineffective alternatives. Most people in California suffer from higher housing costs than the rest of the US, putting major pressure on middle-class wage earners who often put 50% of their income toward housing. Why do we have this problem? First and foremost, the problem is one of supply. California has a chronic shortage of housing, and the lack of supply is the primary reason prices are so high. When supply is limited, people substitute downward in quality just to obtain any housing at all. It’s why an income in Southern California that barely affords a condo would buy…[READ MORE]

Many wealthy and powerful people make Coastal California their home because of the weather, and they build companies and stimulate the economy. The local climate in Coastal California contributes to real estate value, but not because everyone wants to live here. By far the largest reason Coastal California house prices are so high is because there are many high-paying jobs and many wealthy businesspeople who operate businesses here. The climate is arguably as good in Tijuana, but Tijuana is not known for high real estate values. The most expensive real estate in the US is at the Hamptons in New York, but the climate there isn’t very good at all. Perhaps it can be argued that successful business owners who…[READ MORE]

The OC Housing News published its monthly housing market report, covering resale home prices and rental rates across Southern California. IRVINE, Calif., January 2, 2016 – OC Housing News San Bernardino County Housing Market Report: January 2016 Historically, properties in this market sell at a 25.7% discount. Today's discount is 32.2%. This market is 6.6% undervalued. Median home price is $280,200 with a rental parity value of $406,600. This market's discount is $126,400. Monthly payment affordability has been worsening over the last 1 month(s). Momentum suggests unchanging affordability. Resale prices on a $/SF basis increased from $184/SF to $184/SF. Resale prices have been rising for 1 month(s). Over the last 12 months, resale prices rose 7.0% indicating a longer term…[READ MORE]

By forcing owners of shell corporations to reveal their identities, US officials will slow the flow of illicit money into high-end real estate. People who make money outside the legal financial system have a problem. If they want to put their money back into legal circulation without exposing their nefarious activities, they need to "launder" the money through some kind of financial transaction, and ideally they want to hold the asset secretly so the authorities can't find it if they get caught. Owning real estate through a shell corporation is a favored activity of money launderers. Since most agree that cracking down on drug cartels, organized crime, and other illegal activities is a good thing, preventing drug kingpins from anonymously…[READ MORE]

Good climate, good services, and a chronic shortage of housing combine to create an intractable problem with homelessness in California. What is the minimum level of housing quality people are entitled to? If you pose that question to Coastal California residents, many will cite their needs for a large single-family detached house with granite counter tops -- and they believe they are entitled to it. For me, I'm just thankful I am not homeless. If I were facing homelessness, I wouldn't want to freeze, and I wouldn't want to starve, so I would seek out a location with good climate and ample social services. The want for a good climate rules out the Northern US, the rain and humidity rules…[READ MORE]

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