{"id":2391122,"date":"2025-01-16T11:43:02","date_gmt":"2025-01-16T16:43:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/entry-level-california-home-costs-up-88-from-2020-fires-to-spike-prices-further-washington-examiner\/"},"modified":"2025-01-16T11:44:11","modified_gmt":"2025-01-16T16:44:11","slug":"entry-level-california-home-costs-up-88-from-2020-fires-to-spike-prices-further-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/entry-level-california-home-costs-up-88-from-2020-fires-to-spike-prices-further-washington-examiner\/","title":{"rendered":"Entry-level California home costs up 88% from 2020, fires to spike prices further &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fentry-level-california-home-costs-up-88-from-2020-fires-to-spike-prices-further-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2391122&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>In California,the cost of purchasing an <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nearly-three-out-of-four-americans-say-the-economy-is-on-the-wrong-track\/\" title=\"Nearly Three Out of Four Americans Say the Economy Is On The &#039;Wrong Track&#039;\">entry-level home<\/a> has risen by 88% as 2020,as highlighted by a recent report from the Legislative Analyst&#8217;s Office. The increase in monthly payments is being driven further by\u2062 ongoing wildfires\u2062 that have destroyed over 10,000 structures in\u200c affluent areas, pushing wealthy families to search for new housing options.Consequently, housing prices are expected to continue escalating. \u2063For example, the payment for a mid-tier home reached nearly $5,800 per month in December 2024, marking an 84% rise since January 2020.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Entry-level California home costs up 88% from 2020, fires to spike prices further<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1937267\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square) &ndash; The monthly payment to purchase an entry-level California home has risen 88% since 2020,&nbsp;<strong><a href=\"https:\/\/lao.ca.gov\/LAOEconTax\/Article\/Detail\/793\">according<\/a><\/strong>&nbsp;to a new report from the non-partisan, state-funded Legislative Analyst&rsquo;s Office. With the ongoing wildfires having destroyed over 10,000 buildings in high-income areas, prices are primed to go up even further as wealthy families seek new shelter.&nbsp;<\/p>\n<div class=\"article-paywall\">\n<p>&ldquo;Payments for a mid-tier home were nearly $5,800 a month in December 2024 &ndash; an 84% increase since January 2020. Payments for a bottom-tier home were over $3,500 per month &ndash; an 88% increase since January 2020,&rdquo; wrote the LAO. &ldquo;This rapid increase in monthly costs for homebuyers was driven by higher home prices and increasing mortgage rates.&rdquo;<\/p>\n<p>The LAO also notes that home prices dropped briefly early in the pandemic during 2020; rising prices spurred by <a href=\"https:\/\/amzn.to\/3YuVZYV\">low interest rates drive home payments<\/a> to rise even as rates remained steady, with rate increases starting in 2022 making financing those higher purchase prices even more expensive.&nbsp;<\/p>\n<p>The LAO says that this rapid increase in mortgage rates from 3% before 2022 to 7% now means that many homeowners can&rsquo;t afford to move, even if they wanted to, thus putting further pressure on housing prices as fewer homeowners decide to sell.<\/p>\n<p>&ldquo;For example, if a homeowner with a mortgage rate of 5 percent sold their home and bought a new similarly-priced home at <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/without-fiscal-responsibility-u-s-headed-for-a-worse-economic-crisis-economic-policy-expert\/\" title=\"Without Fiscal Responsibility, U.S. Headed for a Worse Economic Crisis: Economic Policy Expert\">current interest rates<\/a>, they would have monthly payments approximately 18 percent higher. For the typical homeowners, this amounts to over $300,000 more in payments over the life of a 30-year loan. As a result, many are choosing to stay put, significantly limiting the number of homes available for sale in the state&rsquo;s tight housing market,&rdquo;&nbsp;the LAO wrote.<\/p>\n<p>&ldquo;81 percent of California homeowners currently have mortgage rates below 5 percent, while new buyers face the much higher 7 percent rate,&rdquo; the LAO wrote. &ldquo;If a homeowner with a mortgage rate of 5 percent sold their home and bought a new similarly-priced home at current interest rates, they would have monthly payments approximately 18 percent higher. For the typical homeowners, this amounts to over $300,000 more in payments over the life of a 30-year loan.&rdquo;<\/p>\n<p>&ldquo;As a result, many are choosing to stay put, significantly limiting the number of homes available for sale in the state&rsquo;s tight housing market,&rdquo; continued the LAO.&nbsp;<\/p>\n<p>With over 12,000 buildings now&nbsp;<strong><a href=\"https:\/\/www.fire.ca.gov\/incidents\">destroyed<\/a><\/strong>&nbsp;by the ongoing fires &ndash; concentrated in wealthier areas such as the Pacific Palisades where the median home for sale before the fire cost $4.6 million &ndash; prices are already spiking as <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/obama-presidential-center-brings-rising-costs-to-low-income-chicago-residents\/\" title=\"Obama Presidential Center Brings Rising Costs to Low-Income Chicago Residents\">high-income families<\/a> try to get temporary housing while their homes are rebuilt, or move somewhere new entirely.&nbsp;<\/p>\n<p>The City of Los Angeles permitted just 8,706 new homes in 2024, down from 11,311 in 2023, and 15,295 in 2022, meaning the wildfires could decrease the city&rsquo;s overall housing supply as building slows.&nbsp;<\/p>\n<p>Hilgard Analytics&rsquo;s 2024 report on residential permitting in Los Angeles blamed high interest rates and the city&rsquo;s new transfer tax on all property over $5 million for the recent decline.<\/p>\n<p>&ldquo;Persistently high interest rates, coupled with negative externalities from Measure ULA, discouraged developers from taking on the financial risks of new projects,&rdquo;&nbsp;<strong><a href=\"https:\/\/static1.squarespace.com\/static\/64d6d04f67d26f28afc9ac83\/t\/67841a56e3cc347185d1b5c9\/1736710744240\/Residential_Permitting_Trends_Q4_Annual_2024.pdf\">wrote<\/a><\/strong>&nbsp;urban planner Joshua Baum in the report.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1937267\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1937267\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Entry-level California home prices up 88% since 2020; wildfires may drive costs higher<\/p>\n","protected":false},"author":1,"featured_media":2391123,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/01\/GettyImages-2192544004.webp","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[4045,48608,39098,33687,23907],"class_list":["post-2391122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-california","tag-entry-level-homes","tag-housing-market","tag-price-increase","tag-wildfires"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/01\/GettyImages-2192544004.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2391122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2391122"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2391122\/revisions"}],"predecessor-version":[{"id":2391126,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2391122\/revisions\/2391126"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2391123"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2391122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2391122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2391122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}