What is the rent in California

Affordable housing in California : "The housing shortage is ruining the economy"

The prices for residential property are rising and rising in Germany - in some regions normal earners can no longer afford to buy the property they want in a popular location. The inflation trend is enormous, especially in metropolitan areas such as Munich, Hamburg or Berlin. Is there nothing that can be done?

Immigration to the metropolises is not a singular German phenomenon. Other large cities in the world are also feeling the pull. Their efforts to keep the associated structural problems small vary in strength. The US state of California has initiated special activities. In June 2016 the Senate decided on a bundle of initiatives. It is now to be fed into the legislature's “pipeline”, as Governor Jerry Brown and representatives of the Democratic Party announced on July 17th.

The laws are due to be passed this summer. In essence, it is about the fact that construction projects can no longer be overturned so easily. On the one hand. Second, perhaps more importantly, construction projects should be accelerated. Thirdly, the creation of affordable housing is to be supported.

In California, as in Berlin, there is a lack of affordable middle-class homes

In cities like San Francisco, the consequences of immigration and immigration show up like in a magnifying glass. They are similar to Berlin. Tax revenues are high and the unemployment rate is low. California has always been a favorite place to live, has always seen waves of soaring prices. But experts say the shortage of new buildings and the booming economy brought about the current crisis.

"It's not an elitist problem on the west coast," says Senator Scott Wiener (Democrat) from San Francisco. He represents San Francisco, Daly City, Colma, Broadmoor. “The housing shortage is damaging the environment because people are forced to commute. He's ruining the economy, ”he says. "It affects broad sections of the state."

In California, as in Berlin, there is a lack of affordable apartments and houses for the middle class. The average cost of owning a home is about $ 550,000, according to the New York Times, twice the US average. Rent prices are rising faster than incomes. There is a shortage of around 1.5 million apartments for those on lower incomes.

In LA, people are moving into vans and the number of homeless is increasing

This is like a pair of scissors that can cut the air off even those looking for an apartment in Berlin, says Robert Litwak, managing director of “plusForta GmbH” (Kautionsfrei.de): “If a specialist or manager earns an average of around 52,000 euros in Germany, it's in Berlin only 42,865 euros. The below-average incomes collide with the steadily rising rents, which means that Berliners have to spend an average of 45 percent of their total monthly income on their four walls. ”So the rents are no better than the homeownership.

This is also the case in California: In Los Angeles and Sacramento, rents rose by four percent within a year. The consequences can be clearly seen. In Los Angeles, people are moving in vans, in Silicon Valley caravans parked on the roadside show how difficult it is to find a home in the hot spots on the American west coast. According to data from L. A. County - the most populous in the United States at 9,818,605 - the number of homeless people in 88 self-governing cities and many unincorporated areas rose to 58,000 last year.

The rising house prices are a threat to the quality of life and the economic strength of the US state, whose "Silicon Valley" is one of the most important locations for the IT and high-tech industry worldwide. Homeownership prices have risen 75 percent in the past five years: in Los Angeles, San Francisco, San Jose, and San Diego. "We have many cities in California that are very happy to have thousands of new workers in their glitzy new high-tech locations - at the same time they are blind to their housing needs," said David Chiu, head of Assembly Housing and Community Development Committee Democrats in San Francisco, on the legislative initiative.

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