November 05, 2019

California's housing crisis -- Blame Facebook, Google, Apple? Nope, here's the real culprit

Dana Mathewson

Many people have pointed many fingers in many different directions in attempting to assign blame for the homeless situation. Especially in California, where the problems in San Francisco have hit a real crisis. Here's a really good analysis.

Who is responsible for California’s affordable housing crisis?

If you listen to the state’s Democrats, their oppressive housing regulations have nothing to do with it. Rather, big, bad, for-profit technology corporations are to blame. Yes, the problem is that Facebook, Google, Apple and the other big tech companies have created too many jobs which pay too much.

I bet a lot of other states would love to have this problem. What a message to send to corporations deciding where to locate: If you create too many jobs in our state, you are going to have to pay.

California Governor Gavin Newsom and other state leaders have been leaning on these companies to address the "problem” they have created, while accepting no responsibility for the role the state has played. In response, the companies have stepped to the plate with billion-dollar-plus commitments to assist the state with its problem. Apple is the latest to contribute, pledging a total commitment of $2.5 billion.

"The sky-high cost of housing — both for homeowners and renters — is the defining quality-of-life concern for millions of families across this state, one that can only be fixed by building more housing," Newsom said, according to a statement from Apple. "This partnership with Apple will allow the state of California to do just that."

The governor is correct that more housing must be built. He is wrong to pursue a policy of arm-twisting the state’s largest companies to contribute to it and for the state to play any role in the building of the housing. The best thing for the state to do is to get out of the way.

In a truly free market economy, a housing shortage should never exist. [emphasis added] As demand for housing rises, supply of housing rises to meet the demand.So, when you hear about a housing shortage, you must ask, what has interfered with the free market to keep it from working?

The answer, as is almost always the case when price increases grossly exceed inflation, is excessive government intervention. (See spiraling tuition costs brought on by unlimited government-funded student loans, and spiraling health care costs brought on by excessive government mandates on private insurance).

The rest of the article is here, https://www.foxbusiness.com/technology/james-breslo-californias-housing-crisis-blame-facebook-google-apple-nope-heres-the-real-culprit and it applies not only to California.

Posted by: Timothy Birdnow at 12:19 PM | Comments (2) | Add Comment
Post contains 431 words, total size 4 kb.

1 If Google et al were the cause of the housing shortage, why is there a shortage in San Diego? Google is not here, nor is Facebook or Apple. None of them are within commuting distance of here. None of the other tech giants is here. The biggest thing, other than "defense," is Qualcomm, which is not a pimple on Google's butt. So why the shortage in San Diego? Answer, because San Diego is in California.

Posted by: Bill H at November 05, 2019 04:11 PM (vMiSr)

2 Bill makes an excellent point!

BTW; remember when oil prices were spiking and these same people were telling us we couldn't "drill our way out of the problem"? Back then supply had nothing to do with demand. Now that they have to live with the results of their own policies supply is apparently everything.

I used to work in the Real Estate business, and I worked with a fellow who worked in the California market (twice, as it turns out). He said landlords were treated like the Joker from Batman by the authorities; they were considered robber barons. There were advocates who would take you to court if you tried to evict a bad tenant, and they would argue it was a "death sentence" before a judge, the logic being that the tenant would become homeless and die. The judges always bought it, too.

So you couldn't kick bad tenants out. They would tear the place up, chase away good tenants, and make your life miserable.

So, a part of the lack of "affordable housing" in California is a result of the soft hearted, soft headed approach taken by state officials.

Posted by: Timothy Birdnow at November 06, 2019 07:51 AM (eruun)

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