California's boom in high-wage jobs, such as those in the tech sector, has shoved housing prices skyward and threatens to squeeze low- and middle-income wage earners out of the Golden State, a report released Wednesday warned.
Those disturbing findings were contained in new research compiled by Beacon Economics and commissioned by Next 10, a San Francisco-based think tank.
California is adding jobs and wages are going up, but a new economic review warns a housing shortage could crimp the state's economic growth.
Three new reports from Beacon Economics looked at housing, wages and migration. The studies found California continues to create jobs and attract people from other states. However, the reports also find there is not enough new housing in the pipeline.
A growing population is increasing competition for housing, which is driving up prices. That situation isn't getting any better.
So, as it turns out, back in June 2014, California’s labor market finally recovered all of the jobs lost during the Great Recession, according to a report by Next 10.
Next 10, if you've never heard of them, employs research from leading experts on state issues and creates a portfolio of educational materials. They just got around to finalizing the crunching of the data, along with Beacon Economics, which is one of California’s leading economic research and consulting firms.
California's business climate has been a perpetual target of ridicule.
Out-of-state politicians and critics of the state's regulations have delighted in depicting California as an inhospitable place to do business.
The Golden State perennially ranks at the bottom of national surveys gauging business friendliness. Chief Executive magazine recently called it a "deeply troubled" state, where companies are so over-regulated that "most cannot afford to do business."