Only a TINY number of houses in these six CA communities are on the beach. TINY!

The overwhelming majority of homes in these areas aren’t within a MILE of the beach. My pricey home in Scripps Ranch is SEVEN miles from the beach.

Check out my other comment here on the average size of a San Diego affordable middle class home — 1,056 sq. ft.

Governments owns most of the land, and severely restricts and hinders any building on private land. We are EXTREMELY anti-housing (unless it’s “affordable housing” paid for by taxpayers at incredible cost).

FACT: AS A STATE — the ENTIRE STATE — California ranks 49th worst for percentage of home ownership.
http://riderrants.blogspot.com/2013/02/more-dismal-california-economic-rankings.html

FACT: The average 2012 CA impact fee for single-family residence was $31,100, 90% higher than next worst state. 265% higher than jurisdictions that levy such fees (many governments east of the Sierras do not). For apartments, fee averaged $18,800, 290% above average outside state. The fee is part of the purchase price, so buyer pays an annual property tax on the fee!
http://www.newgeography.com/content/003882-california-homes-require-real-reach

1. The average home square footage of a California affordable home in these terrible markets is from 1,000 to 1,200 sq. ft. My San Diego market average is 1,056 sq. ft. Such modest CA homes are significantly smaller than the “middle class affordable” square footage in other markets. And not included is the amount of LAND one acquires with the home, but almost surely CA lots are much smaller.

2. In the past 12 months, there has been a dramatic drop in the number of homes for sale that meet the middle class affordable home classification. More than likely this has to do with the housing recovery, coupled with higher mortgage interest rates. Check out the chart below. San Francisco dropped from 24% to only 14%. San Diego dropped dramatically from 46% to 28%. These percentages dropped in almost all the markets this past year, but the drop is far steeper in the CA markets.

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Note that the study looks at ONE HUNDRED U.S. real estate housing markets. CA “houses” 6 of the 7 worst spots — 1, 2, 3, 5, 6, 7.

The middle class does not own ocean front property of the type affected by the coastal commission. What the middle class can do is go to places on the coast and vacation.

Given opportuntiy, the wealthy would own every inch of California coastline and keep the middle class off the beaches.

That is reality.

But let’s just focus on the balance sheet federal debt of $20T. The historical norm for interest rates is about 7%. What is 7% of $20T? $1.4T. That amount would consume about 37% of the current federal budget. For every 1% rise in the interest rates tack on another $200B. For every 1% rise it consumes about another 5% of the federal budget. Should the interest rates surge to 10% (very possible if the bond markets go wacky) the interest on the debt would be in the area of $2T and consume over half the federal budget. Sustainable?

Currently, the nation is like a man who makes $27000 a year and spends $38000 a year who has accumulated $170000 of debt on his credit cards. Imagine him walking into his banker’s office and asking for another $20000 credit for his card. What do you think the banker would tell him?

None of this is sustainable by any standard of reason employed by any sane man.

The young generations will pay dearly.

They do not leave.

You will stay in California……..misery likes company.