Expert Explains Why Low Unemployment Numbers Means Higher Home Prices

ABC News Los Angeles affiliate KABC-AM interviewed Richard Green of the USC Lusk Center on why it is unlikely the price of homes in Southern California will go down soon.

Dr. Richard Green, Chairman of the USC Lusk Center for Real Estate explains why the cost of Southland real estate is unlikely to go down anytime soon.

“The fundamental problem is we’ve had robust job growth in California and particularly here in Southern California, unemployment in LA County is near its all time low and we haven’t built remotely enough housing to reflect that economic change. You know, a good rule of thumb is you should be building one house for every job or job and half created and it’s more like we’ve had 7 or 8 jobs created for every house we’ve built. ”

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