California is in
a housing crisis.
Mandated prevailing
wage would make
housing even more
expensive.

Mandated
prevailing
wage would
increase the
cost of a new
home by $84,000
and rents by
$460 per month.

Mandated Prevailing Wage Would

Dramatically Hurt Housing Affordability

Increase the statewide average cost of a new home by $84,000. (Source: California Homebuilding Foundation, August 24, 2017)

Increase monthly rent as much as $460 per month in multifamily developments. (Source: California Center for Jobs and the Economy, May 2017)

Increase new home construction by 37%. (Source: California Homebuilding Foundation, August 24, 2017)

MANDATED PREVAILING WAGE WOULD

HURT THOSE ALREADY STRUGGLING TO MAKE ENDS MEET

Dramatically increase the number of Californians living in poverty by another 481,000

Result in longer commutes and further drive Californians from major job centers as they seek housing they can afford.

Three million California households pay more than 30% of their income toward rent. Housing-cost burden is experienced disproportionately by people of color. (Source: California Department of Housing and Community Development, January 2017)

Every $1,000 price increase on new homes pushes 15,328 households out of the market, making the American dream of owning a home unattainable. (Source: Eye on Housing, December 9, 2016)

California is in the middle of a

Severe Housing Crisis

The average California home already costs about 250% more than the national average. (Source: LAO Report, Mar 2015)

California’s average monthly rent is 50% higher than the rest of the country. (Source: LAO Report, Mar 2015)

Only 31% of Californians can afford the state’s median priced home ($511,000). (Source: KPBS, Feb 10, 2017)

The median rent has increased by four times the amount of the median renter household income since 2000. (Source: CHCP)

California’s home ownership rate ranks 49th of all 50 states and is at the lowest level since 1940. (Source: NBC News, Oct 12, 2011)

California’s Housing Crisis is

Rooted in a lack of supply

From 2015 – 2025, approximately 1.8 million new housing units are needed to meet projected population and household growth. To meet this projection, California needs 180,000 new homes annually. (Source: California Department of Housing and Community Development, January 2017)

Fewer than 80,000 new homes were built annually over the last 10 years. (Source: California Department of Housing and Community Development, January 2017)

Between 2003 -2014, not one region in California built enough housing to meet its regional need. (Source: California Department of Housing and Community Development, January 2017)

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