Essay Example on California Homelessness: 500K Affordable Houses Needed Annually

Introduction

In the United States, California is the state that has the highest number of homeless people. The main reason behind the homelessness in California is the high cost of rent and houses. California State has over 150,000 individuals sleeping on the streets, cars, and shelters (Levin, 2018). Bills such as capping rent rates and housing first have been unsuccessful in reducing homelessness; thus, the best-proposed Bill in resolving the issue is building about 500,000 affordable houses annually for the state for the next ten years.

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Leading Causes of Homelessness in the State

The main reason for the high costs of houses in California includes the building of insufficient houses (Levin, 2018). There has been a reduction in the number of houses built in the state while the population increases. The state should build more homes in keeping the price stable. In meeting the demand, the state should work on building more houses. The other reason for increased homelessness in California is the demand for living and working in Urban California (Levin, 2018). Furthermore, in most parts of California state, the process of getting a new house of challenging, expensive, and time-consuming. This issue makes it difficult for developers to build houses in the state, and that is a contribution to high homelessness.

When comparing California to other states in the United States, raw material, labor, and land costs are so high (Stinson, 2019). The topography of the coastline and ocean also makes it a bit expensive in building a house. Moreover, the issue of limited land has resulted in high demand making the land prices to be high. Costs of labor and materials have increased for the past five years. Generally, the cost of construction is 20% higher in California State as compared to the other states (Levin, 2018). Construction no-longer appeals to the younger generation workers making it difficult for the companies to recruit them in replacing the graying workforce.

Previous Laws Introduced to Reduce Homelessness

Different laws have been introduced in California to help reduce the issue of homelessness. Unfortunately, the laws have not been able to reduce homelessness in the state. Some of the laws which have been introduced include 'housing first,' permanent supportive housing, rent capping, and Federal housing assistance. Therefore, the Bill that California State should implement in reducing homelessness is the government building about 500 000 houses annually in California for ten years.

Proposed Bill

The Bill of building 500, 000 affordable houses annually is the best one to reduce the issue of homelessness in California. The California government will fund the construction of the houses, and for an individual to qualify for the houses, they should be low-income earners. Furthermore, the prices of the houses will be low as compared to the current rate, which is $2,800 per month for the residents. However, disabled individuals will be given the houses without paying a penny. They will only be required to participate in the community development of the state.

Reasons why California Government should build more Houses

The major reason is that supply is less than demand. The number of households in the state is highly increasing, leaving a shortage in the housing stock. The issue further makes the homeowners and landlords increase house and rent costs (Stinson, 2019). The second reason is that there is a fall in affordability. Although the recession that took place made some of the houses prices to fall, for the first time buyers, the cost is still high. Building more houses can also result in enhancing the flexible labor market and economic benefits. Houses prices have made it difficult for people to move to California, which has also resulted in a labor shortage in some of the areas (Stinson, 2019). Thus, increase the houses supply will make the labor market to function efficiently.

The increased number of households in the state is also a major reason for building more houses. The things that are attributed to the increased household include net migration, social changes, a growing population, and more single people live alone (Levin, 2018). Another reason is intergenerational inequality. If the state does not build more houses, then the rent and house prices will continue increasing. Also, only the existing homeowners are benefiting at the expense of young individuals that need to spend more on mortgage payments and rent.

Benefits

The main benefit that the government gets for building more houses in the state is reducing homelessness (Doti, 2016). The reason is that the new houses will be more affordable and many people will resolve to rent them instead of staying in the streets. Also, the issue of high rent is the major cause of homelessness, and making the houses more affordable is the only strategy of resolving it. Building houses is the best Bill since the number of houses in California is less as compared to the residents. Additionally, the process and cost of building houses in the state are generally challenging and expensive, making it difficult for the tenants to take that direction.

It is a human right to own a home. The Bill of building more homes is advantageous since it will not only create new homes for the resident. It will also increase supply chain confidence, stimulate the economy, communities' revitalization, and job creation (Doti, 2016). Some of the construction workers are currently unemployed, and this will prove to be a good solution as only a few new houses are currently built in California. Apart from the mentioned benefits, building more affordable houses can also result in the reduction of crime in the state. Homeless people have resolved to engage in criminal activities to help them get funds, which they can use in settling their daily needs.

Challenges encountered in implementing the Bill

The challenge that may be encountered in implementing the Bill is a shortage of finance. Building about 500,000 houses annually needs a lot of finance that the government should set aside. Infrastructure is another problem since it is costly to purchase land and raw materials in California. Furthermore, the challenge that may be encountered if the Bill is implemented is that the low-income earners may default to pay their rents.

Conclusion

Bills such as capping rent rates and housing first have been unsuccessful in reducing homelessness. Therefore, the best proposed Bill in resolving the issue is building about 500,000 affordable houses annually for the next ten years. The main causes of homelessness in California include the building of insufficient houses, high rent, expensive cost of raw materials and land, and the high cost of labor. The benefits that the state will get by building more houses is mainly reduced homelessness. The other benefits include job creation, improved economy, and reducing criminal activities.

References

Doti, L. P. (2016). Financing California real estate: Spanish missions to subprime mortgages. Routledge.

Levin, M. (2018, May 4). 5 Reasons California's Housing Costs Are So High. Retrieved from https://www.kqed.org/news/11666284/5-reasons-californias-housing-costs-are-so-high

Stinson, M. (2019). Determinants of Homelessness in California.