Home Prices Have More Than Tripled in These Six Cities

California is in the midst of a housing crunch. Over the past year, home prices have risen 20%. You can thank low inventory (California is ranked 49th among 50 U.S. states for housing units per capita) and high demand, driven in part by low interest rates.

But California housing costs have actually been rising for years. Since 2000, at least 6 California cities have seen home prices more than triple:

  1. San Francisco (290% increase)
  2. Los Angeles (280% increase)
  3. Riverside (278% increase)
  4. San Diego (275% increase)
  5. San Jose (261% increase)
  6. Sacramento (237% increase)

A new report from the Legislative Analyst’s Office warns the problem could grow worse as a result of climate change.

Housing in California is already very expensive, primarily because there is not enough to meet demand. Many of the key ways that climate change will affect housing… also could further increase housing costs. These effects likely will vary geographically based on climate change impacts. For example, the need to modify and maintain existing homes and higher insurance premiums will directly increase the costs of homeownership. This could be of particular concern to the extent it reduces the availability of less expensive housing. Additionally, climate change could impede housing supply, particularly in the short term. For example, the state’s potential housing supply will be reduced to the degree climate change risks limit development in some areas, although building more densely in strategic locations would mitigate this impact. Additionally, supply will be impacted—at least in the near term—if a large number of structures are destroyed by wildfire, flooding, or other hazards. To the extent that climate change keeps the supply of housing lower than it otherwise would be, this will put upward pressure on housing costs, exacerbating the state’s housing affordability challenges.

Read the LAO report here.