The McKinsey Global Institute released a report in October called, “A tool kit to close California’s housing gap: 3.5 million homes by 2025″ The report looked at California’s housing market and recommended a number of actions to fix what they described as a “chronic housing shortage.” McKinsey stated that their”… objective is to provide rigorous, fact-based analysis on a charged issue, and to present a practical blueprint for how cities, state authorities, the private sector, and citizens can work together to unlock housing supply and ensure housing access” Among their findings were:
- 50% of the state’s households are unable to accord the cost of housing in their local market.
- The affordable housing gap is $50 billion per year.
- The affordable housing gap results in $140 billion in lost economic output per year.
The report offered a handy two-page summary of their key findings and recommendations that can be downloaded here.
To get more information and to download the full report, visit the McKinsey Global Initiative website.