Notes from the California housing crisis
The California Building Industry Association sent out a memo from president and CEO Dave Cogdill on Monday regarding what it deemed a "housing crisis" in California.
"California is facing a housing crisis that has reached alarming proportions: demand is far outstripping supply, driving prices up and keeping far too many working Californians from becoming first-time homeowners," read the report's summary.
Cogdill cited reports from the nonpartisan Legislative Analyst's Office and Beacon Economics that point to the lack of supply as the primary culprit of California's expensive housing prices. Consequently, both of these reports also recommend adding up to an additional 100,000 private housing units annually as a meaningful solution.
Here are some other highlights from the memo.
The average cost of a California home is $440,000 — two-and-a-half times the average national home price, according to a March 2015 report from the LAO. California's average rent is also outpacing the national average at $1,240 per month — 50% higher than the rest of the country.
California's homeownership rate was 54.1% compared to a national average of 63.8% for the fourth quarter of 2015, according to the U.S. Census Bureau.
Potential consequences of this trend continuing unabated include: the inability for employers to recruit and retain employees, the migration out of California of middle- and lower-income earners, an inability for lower-income earners to attain homeownership to build wealth, and a general increase in the poverty index.
According to the LAO and Next 10, there are a number of reasons why housing supply is so low, which include regulations, community opposition and lawsuits, and local finance and land use policies that favor nonresidential development and work against increasing densities.
Ideas for public policies to address the affordability gap include: policies that allow dense development in coastal cities, or expand new market rate housing to alleviate competition.
- The memo also pointed to policies that can make matters worse, such as Mandated Residential Prevailing Wage on Privately Funded Residential Projects, which would result in fewer construction jobs, higher housing costs, and lost GDP and revenues.
Electrolux to acquire Best from Broan-NuTone
In a move that aims to strengthen its position in Europe (and in the kitchen hood market), Electrolux Group has agreed to acquire the Best Kitchen Ventilation EMEA Business from Broan-NuTone.
The acquisition will help Electrolux to flesh out its offering of built-in cooking solutions and will support its growth in the region.
"The acquisition of Best is a perfect strategic match to reinforce Electrolux capabilities for design, R&D and manufacturing of kitchen hoods, which is a key aspect in offering consumers a simply outstanding cooking experience," said Dan Arler, Head of Electrolux business area Major Appliances Europe, Middle East and Africa.
According to the terms of the deal, Electrolux will acquire the Best manufacturing facilities located in Cerreto d' Esi Italy and Zabrze, Poland as well as the rights to design and market the Best brand of kitchen ventilation products in EMEA.
However, Broan-NuTone will continue to design, manufacture and market Best products in North America.
"While we are sad to part ways with our Best EMEA employees and business, we know Electrolux will continue the great tradition and investment of the Best brand in their markets. The Best brand will continue to be an important part of our portfolio and we look forward to continuing to serve our customers and consumers in North America," says Frank Carroll, CEO Broan-NuTone.
The sale is expected to close during the third quarter of this year, pending all regulatory approvals.
Product Central: MaxUSA MAX CN565S3 SuperSider
Once a year, the industry packs its bags and heads to Las Vegas for the annual hardware event that tops all the rest in its scope, diversity, and sheer magnitude.
The National Hardware Show attracts a dense and diverse crowd from all over the country, which is only surpassed by the assortment of products littered across a show floor vast enough to move the needle on one’s Fitbit. It’s certainly not possible to see everything the National Hardware Show has to offer, but that’s why the show organizers are offering tailored recommendations to attendees. For an added level of optimization, here are a few highlights from HBSDealer that might be worthy of your attention.
Here is a product featured in a recent issue of HBSDealer:
MaxUSA MAX CN565S3 SuperSider
The SuperSider is a professional-grade siding tool with a slim-guide contact arm that helps to reduce the appearance of driver marks on materials, an end cap filter that helps to keep internal parts clean, and an exhaust deflector, which allows users to divert exhaust away from their faces.
(maxusacorp.com) Booth: 7450
Check out other products featured in the March 2017 issue of HBSDealer.