The market is changing by the day, with challenges for both buyers and sellers. While it's rather uncertain, let's look at what we know about our LOCAL market that affects housing.
1. We have a mix of buyers, and renters. The fires from a few years ago pushed many homeowners into the rental market. Some of those homeowners decided that rather than sell, they would take their money and travel, or relocate. Some chose to remain renters, meaning those homes wouldn't be going back onto the rental market.
2. BSSM is building a new ministry school, that will accommodate more students. Unfortunately the City of Redding Planning department didn't require dorm space be a part of the development equation to help offset the pressure on local housing, therefore; all of those have to be housed by the local community. Many investors, some affilliated with Bethel, some not, have purchased single family residential homes and are renting room space at premium prices. Great for investors, but hard on locals looking for housing. Nothing against BSSM or their members at all, just stating the impact of the students on housing.
3. Costs of materials due to supply chain issues during Covid, and policies on energy that is pushing the costs of everything up higher, along with permitting fees, etc. has made building new units not make a lot of sense.
4. During Covid we had many people that could now work remotely want to relocate to a smaller city. Redding having all the beautiful recreation and lower housing costs than the bigger cities gained a lot of new residents, many were able to purchase with cash, and the competition for housing drove prices further up.
5. Redding, and our northstate being the hidden gem of CA, with rivers, lakes, caverns, mountains to climb, hundreds of miles of trails, some of the best fishing anywhere, has drawn many tourists here too, and thus investors buy up single family homes and rent as short term rentals (vacation rentals)
6. Finally due to the high cost, and high demand for housing, many locals on fixed incomes, etc. are in shared housing situations, in order to help with affordability.
All of these things feed into the housing costs in our area. None of them, from what I can see are going to be changing anytime soon.
Hopefully our City and County leaders will step up and make housing THE PRIORITY, as as we have many people that are working but cannot find housing, Workers cannot live in cars and tents and make it to work. Kids cannot make it to school. Assuming all those unhoused are drug addicts or mentally ill is a huge mistake. Something needs to happen to change this dynamic. Fees and permit costs need to come down. Cities and Counties need to stop wasting money on vanity projects and get down to taking care of the foundational issues for citizens. We need a LONG TERM CITIZENS FIRST approach to all housing and services. How you achieve that is the dilemma.