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By Glenn and Nona Bradd, Associate Brokers and Residents The Center for California Real Estate (CCRE) has just released its list of top issues and insights in housing this year, ref lecting the past 10 months of conversations among the state's leading government, academia, nonprofit and business leaders working together to tackle California's multi-faceted housing challenges. "This is a critical time in housing with many different issues converging that impact our ability to deliver what Californian's need," said Melanie Barker, president of the California Association of Realtors. The year that began with a spotlight on interest rates and housing affordability quickly shifted focus to homeowners insurance and the leading issue impacting housing and homeownership. The below issues and insights are summarized. 1. Insurance: relief in sight, but still far off. With insurance rates skyrocketing, large carriers leaving the state and major legislative changes underway, homeowners insurance was far and away the biggest issue in the housing sector this year. It has been reported that for the last decade, insurers have been paying out $1.13 for every dollar they've taken in. Insurance Commissioner Ricardo Lara has commited to delivering major insurance reforms around rate change rules by the end of the year to help bring carriers back to the state. 2. Housing supply: reversing a decades-long issue. A multi- pronged approach to supply is necessary to address the current shortage. "We have to continue to advocate for resources, for policy to preserve, protect and produce," said Noni Ramos, CEO of Housing Trust Silicon Valley. "It must be all three strategies." 3. Affordability: an uphill climb with solid solutions and case studies. Affordability is an issue at all income levels. Just 14 percent of California households can afford a median-priced home and must earn at least $236,000 annually to do so. Outdated zoning practices, excess permitting and bloated costs such as impact fees can make projects increasingly less affordable at all levels. Improved supply has a direct impact on price mitigation. Source: www.car.org, Oct. 28, 2024 | LIFE IN SOLERA | DECEMBER 2024 | 9 REAL ESTATE REPORT Top Housing Issues: Insights of 2024