By IRENE MANAHAN Special to the Daily Press
SANTA CLARITA While housing prices will inevitably fluctuate with time, the steep skyrocketing that has squeezed Los Angeles and Ventura county homebuyers in recent years occurred as a result of a failure to accommodate for an ever-increasing population, a new study finds.
This massive shortfall of home development over the greater Los Angeles County area, including the Westside, continues today, according to a joint study by the Building Industry Association/Greater Los Angeles and Ventura Chapter (BIA/GLAV) and the Los Angeles County Economic Development Corporation (LAEDC).
“Meeting the Housing Challenge in L.A. and Ventura” explores the local, weakening housing market, the region’s growing population and their effects on infrastructure.
In particular, researchers make note of just where the county stands in terms of housing supply and demand.
“We’ve been aware of the problem and watched the trends regularly,” said Holly Schroeder, chief executive officer of BIA/GLAV.“There was so much discussion... about the housing market slowing and changing.”
According to the study, between 1990 and 2006, the population of LA County alone has increased 15.6 percent (from 8.86 million to 10.25 million people).If the ratio of residents-to-housing units had remained constant over the last 16 years, more than 493,000 new homes would have been built. Instead, only about 201,000 homes were constructed during that time span.
“The fundamental issue is that we have a shortage of almost 300,000 homes (in the two combined counties,” Schroeder said. “As the population continues to grow, this continuing shortage will jeopardize our economic future and quality of life.”
The study projects an increase in Southern California of more than six million people over the next 20 years. In L.A. and Ventura counties,
Originally published in the Santa Monica Daily Press print edition on January 31, 2007. Read the original PDF.