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The Irony Of Countless Foreclosed Houses And Lack Of Housing For Workers

Tuesday, September 16th, 2008

An employer advocacy group gives a picture in Los Angeles region that presents an irony – on the one side are countless foreclosed empty houses and on the other lack of housing for workers. It is taking out the economic advantage of the area and thus adding to its economic woes.

Recently the Los Angeles Business Council reported that with limited housing choice the region is losing out its economic edge. Public transport on the other hand is insufficient and commuting for long distances is telling on the efficiency of qualified working force.

From 1990 to 2007 there was an increase of 1.4 million in the number of residents. But only 195,000 houses had been built during this time period. The high cost of living is lamentable. It continues even on the heels of increasing foreclosures and tumbling real estate market. This is squeezing out the lower and middle-income group of residents. Those who earned on an average $53,000 could manage to buy less than 11% of the houses that were in the market during the first three months of the current year of 2008.

In 2007 about 49% of the families in Santa Clarita spent about more than 30% of their income on paying mortgage dues, says the study. In Palmdale the figure was about 45%. In Glendale it was slightly lower at 44.5%. This proportion could not be maintained when inflation joined hands with foreclosures. The inevitable happened. For the sake of sheer survival the people began to fail in paying mortgages and surrendered to foreclosures.

The high living costs has been driving the younger people aged between 25 to 34 to leave the region. From 1990 to 2005 that group went down by 19%. There is an urgent need for housing especially in Palmdale. Within 20 years this demand has to be met. Carson and Paramount are places that will generate employment.

There is a suggestion that ½% sales tax should to utilized form executing mass transport projects like sub-way, light rail etc. It is will give relief to the lack of housing in the immediate locality. This however is not the ultimate solution. The best would be for private employers to make capital out of the vacant foreclosed houses and refurbish these to ease the housing problem. If not the exodus of the young and the blight of foreclosed neighbourhoods will deteriorate the quality of life in Los Angeles.