Californian housing fails to meet demand

Californian city planners have overseen a shortfall of one million units in the state’s housing market.

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By  Eudore Chand Published  January 13, 2004

Californian city planners have overseen a shortfall of 1 million units in the state’s housing market. Construction companies are trying to plug the gap with record-breaking building in 2004, but will still barely put a dent in the undersupply. This year, builders are expected to construct 193,000 housing units, the most since 237,747 were built in 1989, said a forecast from the California Building Industry Association. 2003’s final count is expected to come in at 191,866 units. The shortage will get worse every year unless the construction industry can erect over 230,000 units per year. This is the number that experts believe is needed to merely satisfy an annual influx of 600,000 new residents into California. The California Building Industry Association is blaming government constraints for the inability of builders to meet demand. They include the use of environmental review laws to delay and block new homes from being built and the preference of many local governments for retail development that generates tax revenue.

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