Policy & Legislation
Locked Out 2008:
Foreclosures Do Little to Increase Home Affordability
February 21, 2008
On February 14, 2008, the California Budget Project released their annual Locked Out report, noting that the foreclosure crisis "has had little effect on the affordability of [homes] for the average Californian."
Foreclosures have lowered the prices of for-sale homes, but concurrent tightening of mortgage lending standards is keeping homeownership out of reach of many Californians. Foreclosures have also increased demand for rental homes, further squeezing an already-tight supply of apartments.
"According to the report, California still has the second most expensive rental market in the nation and the third-highest rate of homelessness," said Housing California Executive Director Julie Spezia. "Variety and choice for all Californians simply doesn't exist in today's housing market."
Contact Julie Snyder, (916) 447-0503 x 102 or .
