The number of home sales in Southern California is lower now than it was at this time last year, perhaps because housing is becoming less and less affordable. And all of that is tied to the amount of available housing, which—guess what—is incredibly low. A new report from John Burns Real Estate Consulting shows that "[c]autious capital, a lack of finished lots, and notoriously slow planning departments" are all contributing to a 20-year low in new homes being built and sold. Currently, there are 419 "actively selling new home projects"; SoCal has averaged about 1,045 over the last 20 years. Of the six Southern California counties, San Berdoo had the biggest decline in new home production (73 percent below the 20-year average), followed by San Diego (66 percent below), Riverside (62 percent below), Los Angeles (45 percent below), Orange (49 percent below), and Ventura (45 below).
· In Short Supply: Southern California's Housing Deficit [John Burns]