Happy Friday!
I’m just wondering what things are like in your corner of the world? Here in the shadow of California’s capitol, I keep hearing how great the economy is but I think its wishful thinking. Prices of food and energy keep going up due exclusively to government policies. In my town, Elk Grove, the city council is spending money faster than a drunken Congressman with a new girlfriend.
The only fault here that any politician will admit is a housing shortage. What shortage? The only thing in short supply is affordable housing. Ten years ago, at the peak of the housing boom, it cost about $100,000 per lot just to get a building permit. Wages, taxes, and utilities cost much more than ten years ago, but real estate prices in my area have never recovered their peak values of the last decade.
Nevertheless, single people that I know at work are paying apartment rental that is double what my monthly mortgage is costing me. What is worse is that there is plenty of housing available. I have three empty homes in my neighborhood that are within a two minute walk of my driveway. Two of the three are not even listed as being for sale. Yep, they are just sitting there. One has been empty for about two years and another for six months, and the third for about four months. Another family on my street is closing up shop and heading out of state later this year. If this is a common occurrence then things are worse than I imagine.
I fear that by the time Gavin Newsom and the gang in the “bill mill” are done with this state, we will be comparing ourselves to Haiti or Puerto Rico. That’s when you know that California has achieved its goal of being the worker’s paradise that we have been promised. Oh, and then government will have created affordable housing to boot. Until then, buckle-up.