Revolutionizing California's Housing Landscape: New Laws to Tackle Challenges in 2024
The California housing market faces several challenges in 2024, including high-interest rates, slow local approval processes, and a shortage of skilled construction workers. However, a set of housing bills passed during the 2023 legislative session, set to take effect in 2024, aims to alleviate some of these obstacles and promote housing construction. Key highlights of these new housing laws include: Apartment Building Approvals for Lower-Income Californians: Senate Bill 423, spearheaded by San Francisco Democratic Senator Scott Wiener, extends and expands a law that expedites the approval process for apartment buildings with units reserved for lower-income Californians. Affordable Housing on Religious and Non-Profit Property: Senate Bill 4, also introduced by Senator Wiener, facilitates the approval of affordable housing on property owned by religious institutions and non-profit colleges. These laws reflect a broader trend, where the focus was on removing barriers and providing incentives for housing construction. Senator Wiener emphasized that the era of rejecting housing projects is coming to an end. Developers of purpose-built affordable housing, in particular, saw significant benefits from these legislative changes, including greater flexibility in exceeding or overriding local zoning, improved timing and certainty of planning approvals, and relief from environmental review and litigation. Michael Lane, State Policy Director for the urban planning think-tank SPUR, noted that this level of consensus in the Legislature was unprecedented. Pro-development activists, often referred to as "YIMBYs" (Yes In My Backyard), saw substantial victories in this shift toward more pro-housing policies. Notable legislation includes Assembly Bill 1287, which allows developers to build denser and taller structures when they allocate additional units for middle-income earners. Senate Bill 684 simplifies the process of dividing large parcels of land into clusters of townhomes and cottages. However, it's worth noting that not all efforts to promote housing construction were smooth sailing. Some restrictions remain in place, such as the exclusion of historic single-family home neighborhoods from certain pro-density policies. Opponents of state pro-density policies, including local governments, labor groups, and environmental justice advocates, prevented a complete overhaul of the state's environmental law, the California Environmental Quality Act (CEQA). Nonetheless, several new laws make it more challenging for housing project opponents to use CEQA to delay certain types of projects. One significant change is AB 1449, which shields many affordable housing projects from environmental review. Another, AB 1633, requires cities to either approve or deny a project's environmental review within a set time frame. These legislative changes reflect a continued push at the state level to address California's housing crisis by promoting housing construction and streamlining the approval process. The housing market in the state is expected to benefit from these efforts, even as challenges like high-interest rates persist. Additionally, Assembly Bill 1033, introduced by Assemblymember Phil Ting, offers the potential to reshape the accessory dwelling unit (ADU) market by allowing homeowners to sell ADUs as separate condos, provided local governments opt in. This could open up new opportunities for young homebuyers in California's challenging housing market. While hurdles remain, the legislative landscape is shifting toward greater support for housing construction and affordability in the state. Source: https://calmatters.org/housing/2024/01/california-housing-laws-2024/ https://napavalleyregister.com/news/state-regional/new-california-housing-laws-aimed-to-streamline-building-process-take-effect-in-2024/article_5b92cb04-aa8b-5df6-828b-b273038f6b9c.html#:~:text=Starting%20in%202024%2C%20a%20new,as%20local%20governments%20opt%20in. https://www.bakersfield.com/news/new-california-housing-laws-aimed-to-streamline-building-process-take-effect/article_3ec72b42-a8e9-11ee-a9a8-5b0518a8aef1.html
Housing Market Forecast 2024: 4 Expert Predictions
If you've been keeping a close eye on the real estate market, you'll be pleased to hear that some good news is on the horizon for homebuyers. After a tumultuous period, the housing market is expected to stabilize in 2024. While challenges such as high mortgage rates and limited inventory continue to persist, experts believe that conditions for both buyers and sellers will not deteriorate any further. In fact, the upcoming year is poised to be a turning point in the world of real estate, with a potential rebound in home sales, lower mortgage rates, and an increase in home listings. While these improvements will be gradual, it's essential to acknowledge that housing affordability will remain a top concern for homebuyers. Danielle Hale, Chief Economist at Realtor.com, highlights this as the most significant issue. However, the prospect of slightly lower mortgage rates and home prices offers a glimmer of hope, making homeownership more accessible. Let's delve into the expert predictions for the 2024 housing market: Mortgage Rates Will Decrease Mortgage rates posed a significant challenge for homebuyers in 2023, reaching two-decade highs, with rates even touching 8% at one point. However, there has been a recent decline in rates. Factors such as a slowing economy, a weakening labor market, and progress in tackling inflation prompted the Federal Reserve to maintain the federal funds rate and hint at possible rate cuts in 2024. Consequently, 10-year Treasury yields and the corresponding mortgage rates have fallen. Experts unanimously agree that this downward trend in rates will continue into the new year, though not necessarily into the 3% or 4% range. Predictions vary, with Zillow suggesting rates to stay between 7% and 7.5%, the National Association of Realtors anticipating rates to average below 7% by spring and end the year around 6.3%, and Realtor.com forecasting an average of 6.5% for 2024. With rates already trending below 7% at the end of December, there's optimism for rates to remain below that threshold throughout the year. Inventory Will Increase The limited inventory of homes in 2023 was largely due to sellers' reluctance to list their homes, fearing the loss of the low mortgage rates they had locked in. Fortunately, 2024 should bring an improvement in the number of homes available for sale. Overall, inventory may increase by up to 30% compared to the previous year, with some markets experiencing even faster growth. Homeowners who purchased their properties when rates were in the 5% and 6% range have adjusted their expectations regarding rate fluctuations. This means they are now less sensitive to the rate-lock effect, making them more willing to list their homes for sale. Home Prices Will Likely Stay Flat While there will be improvements in housing supply and mortgage rates, the dynamics that have maintained high home prices will persist. The demand still outstrips supply, as inventory remains significantly below pre-pandemic levels. This competitive landscape is expected to keep upward pressure on home prices. On a national level, experts predict that home prices will remain flat or potentially decrease by about 1% in 2024. However, this doesn't rule out the possibility of certain markets experiencing more substantial price declines, similar to cities like San Francisco and Las Vegas. Nevertheless, these declines are unlikely to jeopardize the housing market as a whole. Home Sales Will Increase With improving overall market conditions, most housing analysts anticipate an increase in home sales in 2024. However, there are varying opinions on the extent of this improvement. Realtor.com provides the most conservative estimate, forecasting a modest year-over-year increase of 0.1% in existing home sales, equating to approximately 4 million homes sold. On the other end of the spectrum, the National Association of Realtors (NAR) predicts a robust 13.5% increase compared to 2023. The common thread in these forecasts is the hope that declining mortgage rates will attract more buyers to the market and potentially encourage sellers to list their homes. 2024 is expected to bring some relief to the housing market, with lower mortgage rates, increased inventory, relatively stable home prices, and improved home sales. While challenges remain, the outlook for the year suggests a more balanced and favorable real estate landscape. Buyers and sellers alike can look forward to a market that is gradually becoming more accommodating. Source: https://money.com/housing-market-forecast-2024/
Los Angeles Holiday Lights Extravaganza: A Sparkling Journey Through Festive Neighborhoods
Los Angeles undergoes a magical metamorphosis during the holiday season, as streets and neighborhoods burst into a kaleidoscope of lights, creating a dazzling panorama of festive cheer. If you're ready to immerse yourself in the enchanting glow of holiday spirit, we've curated a list of must-visit locations that promise to make your seasonal adventure truly unforgettable. Embark on a whimsical journey through the city's streets, where each neighborhood competes to outshine the others with breathtaking displays of lights, ornaments, and festive decorations. These radiant spectacles are not just about twinkling bulbs; they are expressions of community joy, creativity, and the boundless magic that the holidays bring. Pasadena: Upper Hastings Ranch Where: N. Sierra Madre Blvd. & Riviera Dr. | 1215 Tropical Ave. San Marino: Christmas Tree Lane Where: St. Albans Rd. & Huntington Dr. Los Angeles: Festive Hotspots The Grove, 189 The Grove Dr.,LA Arboretum & Botanic Garden LA Zoo Lights Marina Del Rey: Boat Parade & Beyond Where: Burton Chace Park | Corner of Palms Blvd. & Federal Ave | McLaughlin Ave. between Palms & Charnock 90066 Altadena: Christmas Tree Lane Where: Santa Rosa Ave, between Mariposa St. and Altadena Dr. Beverly Hills: Rodeo Drive Where: 300 block of Rodeo Dr. Burbank: Norton's Winter Wonderland Where: 513 N. Florence St. Long Beach: Daisy Ave. Christmas Tree Lane Parade Where: Between PCH & Willow St. | 4128 Falcon Avenue Downtown LA: Sparkle Central Where: 700 S. Flower St. | Little Tokyo El Segundo: Candy Cane Lane Where: 1200 E. Acacia Ave. North Hollywood: The Cookie Train Where: 4848 Sancola Ave. Woodland Hills: Candy Cane Lane Where: Lubao Ave & Oxnard St. | 6034 El Canon Avenue Santa Clarita: Winter Wonderland at Wakefield Where: 21865 Copper Hill Dr. Santa Monica: Winterlit Celebration Where: 3rd Street Promenade Sherman Oaks: Lights On Display Where: 3901 Longview Valley Rd. Website: Lights On Display Torrance: Seaside Holiday Lights Where: Torrance Holiday Lights Get ready to stroll through winter wonderlands, experience the warmth of community gatherings, and witness the city aglow with the spirit of the season. It's time to unwrap the magic of Los Angeles's holiday lights and create cherished memories that will last a lifetime. Let the luminous beauty of these festive displays spark joy and ignite the festive spirit within you! The Mardelli Team - Helping You Make the Right Moves. Happy Holidays!!! Click here for the Map
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