📢 SoCal Housing Crisis: Homebuilding Shortage Drives Price Surge

🏡 Southern California is facing a severe homebuilding shortage. Combined with limited buildable land and a rapidly growing population, home prices increased nearly 8% year-over-year in June, setting new historic highs. The average home price in the six-county region is now $876,280. The affordability crisis is particularly severe in Los Angeles and Orange County areas.🏙️

The supply-demand relationship is crucial. There are not enough new homes being built, and sellers are reluctant to give up their current low-interest mortgages to move. The average home price in Los Angeles County is $892,304, and in Orange County, it has reached $1.16 million. High-interest rates and limited affordability make it difficult for many to find suitable homes. Currently, only 14% of households in Los Angeles County can afford a median-priced home, and less than 30% in the Inland Empire.

Despite these significant challenges, there are still opportunities in the market. In June, the number of homes for sale in Los Angeles County increased by 22% compared to last year, providing some relief to potential buyers. Other counties have seen similar growth, which is a positive sign for homebuyers.