Mitch Rochelle, an expert in the US real estate industry, said that the state of California is partly responsible for the housing supply in the United States.
Speaking to GB News he explained that there is a “supply and demand” problem and revealed that if the government allowed construction companies to build it would help.
He also explained that California “paved the way” for supply “in the most aggressive way of any state” in the United States.
“California has already paved the way for additions to its housing supply in a way that is probably the most aggressive of any state in the United States,” he said. “It has relaxed a tremendous amount of zoning laws that would have prevented new homes from being built.”
Mitch Rochelle said California ‘paved the way’
GB News
“They realize they have a housing crisis and a homelessness crisis in California. So what they’re trying to do is pave the way for more supply.”
“It’s on the government, whether it’s a local municipal government or a national government or a regional government, to actually get out of the way and let construction companies build. If you get out of the way and let them do their job, business, the free market will actually solve this housing problem.” “
Earlier in the interview in which he was asked about the crisis, Jacob Rees-Mogg said: “In the UK we have very difficult planning laws which mean houses are not being built. I thought it was easier to build new properties in America?”
The housing expert explained that this is not the case. “The truth is,” he said, “it’s not easy. I tend to simplify the answer to your question in 3 litres. Land, wood and labour.
The housing crisis is similar to the one we face in the UK
Palestinian Authority
“Land prices have risen steadily because the allocated and permitted land and construction of residential houses are very limited. Employment.
“The job market in the United States has been very tight for a long time, and it is difficult to find a skilled worker to build homes.”
Then he concluded his speech by saying: “Timber is the source of all the materials that go into building a house.” It’s not just wood, it’s a lot of things. “Since the outbreak of the Covid pandemic, it has become a global news story that supply chains have been disrupted.”
Jacob Rees-Mogg then commented: “This is absolutely fantastic because in such a large country, you have the same problems we have which are pushing prices up because supply is not meeting demand.
He claimed that the problem is “supply and demand.”
GB News
“There is also mass migration as well. So there is additional waste of demand for housing.”
The expert added: “What they are trying to do is pave the way for more supplies.”
“One of the things the government tends to do when it’s concerned that rents are too high is to intervene by setting caps on how much a landlord can charge or rent or how much rent can grow on an annual basis.
“All it does is discourage other landlords to build new apartments because if they know there is a limit to the amount of rent they charge, why would they build something?
“Again, there are clear problems with clear solutions. All the solutions are on the supply side because we know we have a supply problem, we don’t have a demand problem.”