Next year is projected to be the best year yet for the economy since the start of the recovery, with California's state economy lining up to do better than the nation. And this positive trend is expected to continue for the next two years, a new report from Beacon Economics said.
But HousingWire isn't happy to stop with just that. Click the next page to see five awesome facts on the future of California's housing.
First, here are the results of the Beacon report: (click here to go to the second page now)
California’s economy will continue to steadily improve throughout the life of the state forecast in 2019. Employment growth is expected to settle in at 2.5% by 2016, and the state’s unemployment rate is forecast to drop below 6% by mid 2017 – about half of what it was at its peak in October 2010 (12.4%).
“Every metropolitan area in California has now returned to job growth,” says Jordan Levine, Beacon Economics’ director of economics. “Although the jobs and broader economic recovery has been more robust in some areas of the state than in others, the overall numbers are indicative of real, sustained improvement statewide.”
However, one of the biggest problems facing California is the rapidly rising cost of housing, driven by a lack of new supply.
“You can’t add jobs if there is no growth in the labor force because people are leaving because they can’t afford housing,” says Thornberg.
But things look positive for the next couple of years since there is sufficient slack in the labor market to allow for solid growth.
Click here to see 5 awesome facts that play into California’s housing future.