Mitch Roschelle, expert in the US real estate industry, has said that California is partially to blame for the housing supply in the US.
Speaking to GB News he explained that there is a "supply and demand" problem and revealed that if the government just "let builders build" it would help.
He also explained that California has "paved the way" for supply in the "most aggressive way of any state" in the US.
He said: "California has actually paved the way for additions to supply of housing in probably the most aggressive way of any state in the United States. They have relaxed tremendous amounts of zoning laws that would have prevented new homes from being built.
Mitch Roschelle said that California has "paved the way"
GBNews
"They realise that they have a housing crisis and a homelessness crisis in California. So they're trying to do is pave the way for more supply
"It falls firmly on the hands of government, whether it be local municipal government or national government or state provincial government, to actually get out of the way and allow builders to build. If you just get out of the way and let them do their job, the free market will actually solve this housing problem."
Earlier in the interview asking about the crisis Jacob Rees-Mogg said: "In the UK we have very difficult planning laws that mean houses just don't get built. I thought it was easier to build new properties in America?"
The housing expert explained that this is not the case. He said: "The reality is it's not easy. I tend to simplify the answer to your question with 3L's. Land, lumber and labor.
The housing crisis is similar to the one we are facing in the UK
PA"Land prices have risen steadily because land that is zoned and permitted and residential home construction is very limited.Labor.
"The labor market in the United States has been very tight for quite a while and finding a skilled laborer to build homes is tricky."
He then concluded with: "Lumbers, the catch all for all materials that go into building a home."It's not just wood, it's a lot of things. And since the COVID pandemic it's been a global news story that supply chains have been disrupted."
Jacob Rees-Mogg then commented: "That is absolutely fascinating because in such a large country, you've got exactly the same problems as as we've got that's forcing prices up because of supply not meeting demand.
He claimed the problem is 'supply and demand'
GBNews
"And you've also got mass migration as well. So you've got that extra waste of demand for housing."
The expert added: "What they're trying to do is pave the way for more supply."
"One of the things that government tends to do when they're worried that rents are getting too high is intervene by putting caps on how much a landlord can charge and rent or how much year over year rent growth can be.
"All that serves to do is discourage other landlords for building new apartments because if they know there's a limit on the amount of rent that they get charged, why would they build something?
"Again, it's it's there are clear problems with clear solutions. All of the solutions are on the supply side because we know we have a supply problem, We don't have a demand issue."
