Homes are getting more and more expensive in Southern California. Many people are moving away from this state, but, why is this happening? Why is the cost of houses increasing? Home ownership is getting more difficult to obtain because of the constant inflation and the shortage of houses for sale.
The first culprit for home ownership getting expensive is inflation. In Southern California, the inflation rate went up 3.2% in 2023. Inflation is usually caused by supply chain shortages. When a company runs out of supplies, it often increases the price of the product because fewer people would buy it. When the gas supply was low, the gas price spiked up to almost $6 a gallon. A 1,500 square foot house right now is around 600 thousand dollars.
When people want to buy and there’s not a lot on the market, the cost for houses rises. In 2023 housing prices went up 1.3%. When the students at Rio Norte are becoming adults and buying houses the cost of houses will most likely go up 5%.
Home ownership is becoming not affordable and inflation in California is becoming unbearable. Gas prices, House prices, and food prices are all going up. Electricity bills are rising because people are using more electricity. In Los Angeles, over 75 thousand people have experienced homelessness. Owning houses is becoming difficult and there’s no end in sight.