Study Finds California's Economy Slowed by Lack of Housing

Reports from UCLA and UC Riverside show California stymied by housing shortage.

1 minute read

October 6, 2016, 8:00 AM PDT

By Casey Brazeal @northandclark


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Reports from UCLA and UC Riverside show California as a state hungry for more workers, but lacking places for those workers to live. "The state cannot continue to grow as fast as it has in recent years," said economists who wrote the reports, “unless it funnels more people into the workplace. But there aren’t enough homes in the state to accommodate a wave of new workers," according to Natalie Kitroeff's story in the LA Times.

While it may sound like good news that there's so much employment in California, a lack of housing means those around the country who would like to work there may not be able to afford to move to the expensive state. "California is nearing full employment, which is when nearly everyone who wants a job has one. The unemployment rate has hovered just above 5% for the last several months." The report concludes that unless California can remedy this issue its red hot economy will find itself cooled by a tight labor market -- meaning less jobs and less growth in the long term.

Wednesday, September 28, 2016 in Los Angeles Times

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