California is an expensive place to call home.

It’s such a fundamental part of California life it almost feels silly to say. Along with good weather, sunny beaches, Hollywood and the Golden Gate Bridge, the sky-high cost of housing has become part of the state’s national identity.

It's no secret that the American middle class has been steadily shrinking: in the past 50 years, the share of Americans living in middle-class households dropped from 61% to 52% between 1971 and 2024, according to the Pew Research Center.

And California is losing its middle-income earners, often referred to as “middle class,” according to research released earlier this year by California Community Builders, a nonprofit housing research and advocacy organization.

California enacts new mortgage foreclosure procedures.

You've probably heard of "shrinkflation"—and have certainly experienced it in your daily lives.

It's when you buy tortilla chips and there are suspiciously fewer chips in the bag. Or when you run out of toilet paper faster than you used to because, guess what? There are fewer squares on the roll.

Now, that incredible shrinking phenomenon—where companies reduce the size, weight, or quantity of a product but keep its price unchanged—has bled into the housing market.

These days, college isn’t what it used to be. A study from Best Colleges notes that enrollment has been on the decline since the 2010s. Why are people avoiding a degree? Well, the answer isn’t as cut-and-dry as you think.

A Trade School Boom!

The Great Recession (and outsourcing) destroyed many work sectors in the United States. Right now, AI is also disrupting sectors that were traditionally left for college. People who went to college watched in horror as their job wages were slashed and grieved as their white-collar jobs got eliminated.

Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) are an innovative and effective option for adding much needed housing in California.

ADUs have been known by many names: granny flats, in-law units, backyard cottages, secondary units and more. HCD is the state’s leader on local ADU ordinances, which — while optional — have grown exponentially in number as more cities, counties, and homeowners become interested in ADUs as one solution to increasing the supply of affordable housing.

What are the benefits of ADUs?

Mortgage rates continued declining towards the six percent mark, reviving purchase and refinance demand for many consumers. While mortgage rates do not directly follow moves by the Federal Reserve, this first cut in over four years will have an impact on the housing market. Declining mortgage rates over the last several weeks indicate this cut was mostly baked in, but rates will likely fall further, sparking more housing activity.

Primary Mortgage Market Survey®

U.S. weekly averages as of 09/19/2024:

30-Yr Fixed Rate Mortgage 6.09%

The National Association of Realtors (NAR) guidelines on how real estate professionals get paid for their services have changed. This results from a legal action settlement against them and reflection of other pending lawsuits. Realtor practice will have to be more transparent.

These "new rules" for members could upend the way Americans buy or sell their homes. Commission payment is a main point of the settlement. Compensation for services are negotiable and may be a percentage of the price, a flat fee or incentive arrangements.