Solving the Non-Affordability Crisis

Solving the Non-Affordability Crisis

Amid the non-affordability crisis that has plagued the California real estate market, prospective buyers face significant challenges in achieving their dream of homeownership. In this blog post, we will delve into the top three issues that contribute to this crisis in 2023. Moreover, we will explore three robust solutions that corporate America, banks, and the government can implement to make homes more affordable again. Let's dive in and unlock the door to a brighter future for aspiring homeowners.


Part 1: Identifying the Issues

  1. Skyrocketing Home Prices: One of the primary culprits behind the non-affordability crisis is the continuous surge in home prices across California. Limited housing supply and high demand have created a hyper-competitive market, driving prices to unprecedented levels. As a result, many potential buyers find themselves priced out of the market, unable to meet the exorbitant costs associated with homeownership.
  2. Lack of Affordable Housing Options: California's housing market has struggled to keep up with the growing demand for affordable housing options. The scarcity of affordable homes forces potential buyers to postpone their homeownership aspirations or settle for less desirable living situations. The need for more supply in the entry-level and middle-income segments further exacerbates the affordability crisis.
  3.  Burdensome Mortgage Requirements: Tight lending standards and strict mortgage requirements have added another difficulty for potential buyers. Stringent credit score requirements, high down payments, and elevated debt-to-income ratios make it challenging for individuals to qualify for a mortgage. This restricts access to financing options, particularly for first-time buyers who often need help to meet these rigorous criteria.

Part 2: Proposing Solutions

  1. Increase Housing Supply: To combat the non-affordability crisis, corporate America, banks, and the government must collaborate in increasing the housing supply. Developers and construction companies can be incentivized to build more affordable housing units, ensuring a steady influx of homes in the market. Streamlined permit processes and reduced regulatory burdens can expedite the construction of new housing developments, thus meeting the demand more effectively.
  2. Facilitate Accessible Financing: Banks and financial institutions play a vital role in making homes affordable again. By revisiting mortgage lending practices and introducing innovative financing options, they can cater to a broader range of buyers. This could involve relaxing stringent credit score requirements, offering low-interest loans, and creating flexible down payment programs. By adapting to the needs of potential buyers, financial institutions can open doors to homeownership for those who have been excluded thus far.
  3. Government Intervention and Incentives: The government can contribute significantly to making homes more affordable. Implementing policies such as tax credits, subsidies, and grants for developers who focus on building affordable housing can stimulate supply. Additionally, government programs that provide down payment assistance, particularly for first-time buyers, can alleviate the financial burden and improve access to homeownership. Continued investment in infrastructure and transportation can also support the development of more affordable housing options in desirable locations.


The non-affordability crisis in California has hindered the dreams of countless aspiring homeowners. By addressing the skyrocketing home prices, lack of affordable housing options, and burdensome mortgage requirements, we can pave the way for a brighter future. Through increased housing supply, accessible financing options, and government intervention, we can create a more inclusive and affordable real estate market. Let us unite, unlock the doors to homeownership, and ensure that every Californian can call a place their own.

Work With Mark

Mark feels strongly about assisting people in finding real estate that will enhance and enrich their life. His consultations on location, aesthetics, architecture, and history of the neighborhoods has propelled his reputation among many Angelinos.

Follow Me on Instagram