Beacon Economics, reports on a new study that shows California leads the nation in Personal Consumption Expenditures (PCE) as a percent of their income. California was estimated to have spent $1.4 trillion in 2012, the latest information available, making up 12.7% of national PCE. Texas was second at $0.8 trillion. From 2011 to 2012 California PCE grew by 4.7%, outpacing growth nationwide (4.1%) and ranking 8th in growth out of the 50 states.
In 1997, the earliest data available, the average household in California spent 14% more than the average U.S. household. Fast forward to 2012 and that gap had risen to 23%.
The difference is the cost of housing. The state has been in the midst of a housing shortage for years now, due in large part to regulatory hurdles such as the California Environmental Quality Act (CEQA) and other legislation that constrains construction. The lack of supply pushes up prices and forces residents to commit more of their disposable income to housing.
According to the new PCE data California households, on average, spent upwards of $26,000 on housing and utilities in 2012, substantially higher than in the nation overall where the average household spent $16,500. In 1997 California households spent 50% more on housing and utilities than households in the nation overall, but by 2012 that percentage had increased to 58%.
Coal to Cash Homebuyers, Inc. has written about the lack of affordable in Ventura County and pointed out the barriers to entry that are driving up housing costs. We are a member of the community and we are here to help homeowners out of any kind of distressed situation and potential home buyers find their dream home. As investors, we are in business to make a modest profit on any deal, however we can help homeowners out of just about any situation, no matter what! There are no fees, up-front costs, commissions, or anything else. Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.
Coal to Cash Homebuyers, Inc. is part of a nationwide group of thousands of investors who are helping tens of thousands of homeowners every year. We may not be the “traditional” route, but we CAN help and we can do it quickly.
Give us a call today at 805-426-9988 to let us know what YOU need help with!
