The United States is facing a severe housing shortage. A recent McKinsey study found that in California alone 50% of California households cannot afford market rate housing and virtually no low-income families can afford to pay market rates. From 2009 to 2014, California real estate prices increased by 15%, while median income increased by 5%. According to McKinsey, California ranks 49th for housing units per capita, with a current housing shortage of two million units and an estimated shortage of 3.5 million units by 2025. Los Angeles voters, facing a severe homelessness problem, approved a small tax increase, which may take people off the streets but is unlikely to create substantial numbers of new units.


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