California’s housing shortage is a real example of a supply-demand mismatch that is driving home and rental prices. Californian employers are facing an increasing shortage of skilled workers as the high cost of housing in coastal areas. A recent survey showed that 53% of California residents overall, and 63% of California millennials specifically, are considering leaving the state because of the high cost of living.
Over the last decade, an estimated 6 million residents have fled California for a net loss of 1 million residents when considering domestic migration or about 2.5% of the state’s total population, and the state has lost approximately $26 billion in annual income. They know that the historic housing crisis is in California and companies have recently committed to investing billions of dollars in affordable housing projects in California such as Apple company has planed $2.5 billion in affordable housing investments, Facebook and Google each announced $1 billion commitments and Airbnb plans to invest $25 million in affordable housing in California.