Nick Gerli, CEO of the real estate analytics firm Reventure App, said that California’s housing market will continue to face severe affordability challenges. He noted that the typical household must spend over 62% of its gross income on home costs. This statement was made on X.
“California’s housing market will likely continue to struggle until affordability improves,” said Gerli. “The median household in the state needs to spend over 62% of their gross income to afford mortgage and tax payments on a home purchase. That’s the most expensive of any conventional U.S. state. A payment ratio that puts owning a home out of reach for the vast majority of California renter households.”
According to a 2023 report from the Terner Center for Housing Innovation, 14 recent housing laws passed in California, including SB 9 and Accessory Dwelling Unit (ADU) streamlining bills, show promise for boosting housing production. However, researchers found that local implementation remains inconsistent and some jurisdictions continue to resist new development. The report concludes that ongoing legislative refinement and oversight are needed to fully realize affordability goals.
The State of California must build 2.5 million homes by 2030 to meet its projected housing demand, according to a statement from Governor Gavin Newsom’s office. Of these homes, one million must be affordable for low- and moderate-income households. The state has passed a series of legislative measures to increase housing supply, but housing advocates say meeting the goal will require faster permitting and reduced legal delays.
California passed more than 50 housing bills in the 2023 legislative session aimed at addressing the state’s long-standing housing shortage. Measures included streamlining the approval of affordable housing projects, enhancing penalties for cities that block compliant development, and expanding by-right zoning. According to Kidder Mathews, these reforms mark one of the state’s most aggressive legislative efforts to increase housing production.
Gerli is the CEO of Reventure App, a real estate analytics platform that delivers real-time housing data to homebuyers, investors, developers, and realtors. He is widely followed for his affordability metrics and market forecasts, particularly concerning states like California where structural and legislative dynamics heavily influence housing access. Reventure App provides ZIP-code-level market insights across the U.S.
