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The affordable housing crisis in Southern California is not only hurting low income earners, those who earn in the median and 75th percentile brackets are also impacted.
A new report by the University of Southern California (USC) revealed housing is going to become even more unaffordable in the coming years as rents continue to rise and fewer housing units are available.
Although experts agree residents should spend no more than 30 percent of their income on housing, currently those who earn incomes in the 25th to 75th percentile are spending as much as 58 percent of their income on rent.
The affordable and workforce housing crisis is endemic around the state. The USC report noted the politics of development coupled with the high cost of land and record prices for construction materials has led to the increased cost of multi-family development. As a result, the report projected by the year 2020, the average monthly rents in the inland region will increase by $78. By comparison Los Angeles, Orange, San Diego and Ventura Counties are projected to increase by $91, $52, $209 and $107 respectively.
California is at a crossroads. Developers are reluctant to build market-rate housing without tax credits and other incentives while on the other hand, renters and their supporters are pushing for more rent control.
Although the Inland Empire is as impacted by the stand-off as other parts of the state, it is expected the inland area will continue to offer the lowest monthly rental rate in Southern California during the next two years. By 2020, however, the rental rate for apartments in the region are expected to increase by five percent from its current average of $1457 per month to $1535, while the vacancy rate is expected to decline slightly from 3.91 percent to 3.85 percent.