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Californians are paying $50 billion more than they can afford for housing, report says  

One of the biggest domestic issues facing this country in 2016 is accessibility to housing—a problem politicians have been notably silent on. A recent report from McKinsey indicates people in California are over paying for housing, to the tune of $50 billion. That’s a big discrepancy between the amount people are paying for housing versus what they can actually afford. That gap is costing the state $140 billion in lost economic opportunity from potential construction and new business.

The report says there is enough land in California to add more than 5 million housing units in so called “hot spots,” which would in theory alleviate much of the housing pressure. In many areas, including California, there is a misperception that there is not enough available land for construction. But often impediments to development prevent new housing from going up.

McKinsey chose California as a case study to highlight the overall housing problem in the U.S. with the hope that some of its proposed solutions could provide insight for other regions.   RR