Successful real estate investor and founder of NV Real Estate Academy, Nick Vertucci has some scary predictions for the looming housing market crisis in California. Nick Vertucci came into the real estate business after going down with the bust of the dot com era. He founded NV Real Estate Academy to teach others how to reign in their financial independence by buying and flipping real estate. He first transitioned into the real estate business after attending a seminar with a friend and since then he has dedicated himself to learning the ins and outs of housing and markets and teaching others to do the same.
A California man himself, Nick Vertucci has seen first hand what he sees as the downfall and eventual crisis that will become of the housing market. For beginners the median house in California comes at a price tag of $500,000, which is nearly double the nations average home price. The promise of an affordable house is out of sight for most living in California, with many people commuting hours to and from work, and many people simply living out of cars or RVs.
Construction may be at an all time high in California, but where are the homes? Nick Vertucci saw the new 311,000 housing units provided and knew that they would not match the state’s needs. The second issue is new construction is coming in building a smaller number of housing units allowed per zoning regulations. This means although one zone may allow up to 1000 housing units, the builders might only be creating 600 actual livable units within that space. What this is doing is taking up the shrinking available land sources to develop, and actually creating a long term issue to future residents as there will be less land available to develop and much fewer homes to buy. Which in turn will create a market with little opens, and demand along with price will only go up sustaining the high price housing market all to common in California. Another issue as far as construction is concerned, is the attention only to commercial and office properties. Some cities are going broke building new commerce centers, they have completely left out housing development. With new jobs going into these cities, there are no new housing developments these new jobs will attract, creating yet another housing dilemma.
There may be relief in sight, however, a new bill is being negotiated by Governor Jerry Brown. This bill will encourage large scale housing development with affordability at the forefront. Also, this bill proposes to give the review process of housing development directly to the state so that the cities, and the populaces within, can not use tactics to hold off or impede new developments that they may find threatening. https://twitter.com/nvrea?lang=en