California has some of the most expensive housing in the country. In the article, Why California is so expensive: It's not just the weather, it's the regulation, the author defines the situation with a financial view. Our very own CCAM Division President, Brent Kocal, gave us his insight and take on the article: http://blogs.lse.ac.uk/usappblog/2016/07/07/why-california-is-so-expensive-its-not-just-the-weather-its-the-regulation

"This article demonstrates the classic macroeconomics of supply and demand.  Governmental restrictions on new development choke supply in the most desirable areas where demand is the highest.  The result is higher market value for homes in those areas.  I think a couple of things will happen as a result of increased regulation.  The first is that home builders will have to push further and further out from city centers to build single family homes in commutable cities starving for economic growth.  Those cities will likely see home building and development fees as hitting the jackpot.  The second thing that's going to happen is that more people will choose to live closer to city centers in more condensed housing units.  This will increase demand from homebuyers for homebuilders to develop significant common amenities into their city center developments.

Both of those results play well into homeowners' associations.  Cities further out will want the development cash cow to be as fat as possible and will require homebuilders to install infrastructure and parks that will require owners' association's to maintain.  Developments closer to city centers will have common building maintenance responsibilities in addition to the common amenities." – Brent Kocal, CCAM Division President