California officials announced over $414 million in funding aimed at building or rehabilitating 2,099 homes across 16 counties.
The big picture: The majority of these homes will serve low- and extremely low-income residents, with 794 units reserved for households earning up to 30% of the area median income.
- Additionally, 866 homes will cater to those earning between 31% and 50% of the area median income, and 408 homes for households earning 51% to 80%.
What they’re saying: Gov. Gavin Newsom emphasized the importance of this investment: “We cannot solve either the homelessness or housing affordability crisis without creating new housing.”
- He added, “Today’s announcement will create thousands of new homes for California families, helping hundreds of thousands of people access housing.”
Driving the news: The state continues to grapple with housing affordability challenges; a June study found that the income required to buy a typical home nationwide is nearly $125,000, well above the U.S. median household income of $77,719.
- In California’s most expensive cities, required incomes to afford homes are more than double, sometimes quadruple, the median income.
- Renters also face hardships, with California being the most expensive state for renters, where a person must work 98 hours at the minimum wage of $16.50/hour to afford a modest one-bedroom rental at $2,092 per month.
