Everyone Should Take Interest in California's Housing Crisis

With a gross state product of (GSP) of more than $2.3 trillion, California has an economy that rivals that of most countries and is the largest state economy in America. Home to almost 40 million people, the state has a median home value of $371,400, according to the US Census. Median gross rent is $1,243. All of that with a median household income of $61,489 and a per capita income of approximately $29,906. You do not have to be an economist to see that those numbers add up to millions of people having difficulty finding affordable housing.

Home prices skyrocketed in the early 2000s with easily obtainable mortgages. When banks tightened their lending requirements in early 2007, prices dropped. This brought many cash buyer investors into the market. Now, with the median price at about $650,000 for the San Francisco Bay Area and the most affordable region being the Central Valley at a median home value of around $290,000, California has one of the lowest Housing Affordability Indexes in the country. It also is the most expensive state in the country to lease a home.

The California Economic Summit

Early in April of 2016, housing experts came together with builders, lawmakers, city planners, and environmentalists at the California Economic Summit to address the housing crisis that is affecting millions of Californians. Their goal is to find a way that people of all income levels can afford quality housing. It is crucial to the health of the state's overall economy that California address its low Housing Affordable Index. By finding ways to lower the percentage of annual income a household must devote to housing, they free up billions of dollars to be spent in other areas of the economy. For years separate groups have been advocating affordable housing for seniors, the homeless population, and veterans. The reality is that California's housing crisis is affecting everyone. New numbers for 2016 show that the housing crisis goes beyond people with minimum wage jobs. It is hitting middle class people and altering their lifestyle and spending.

Why the rest of the country should care

Many people never thought about title insurance before the housing market collapse. The quick shifting of ownership by banks after foreclosure led to many title issues. Approximately one of every three title searchers reveals a cloud on the title or some other defect in the public record that needs clearing to close the real estate transaction. The national housing crisis shined a spotlight on the need for homeowners to have their own title insurance policy, in addition to the lenders coverage. A recent report by the Public and Affordable Housing Research Corporation (PAHRC) reveals another problem growing beneath the radar for every state in the country. While federal programs are providing homes for approximately 5 million American families, there are many more applying for assistance who can't even get on a waiting list for aid.

There are 2.76 million families on the existing waiting lists for housing vouchers. Analyst estimate that an additional 9.5 million households would apply for housing vouchers were there no caps on the waiting lists. Housing agencies have closed their waiting list due to limited resources and vouchers. These numbers do not take into consideration the eligible families who do not seek federal assistance, but are still struggling to keep a roof over their heads.

One in four renters across the US pay over half of their income toward housing. Even for people living in the Eastern United States, California's housing problems are closer than many people realize. We have all seen how one sector of the economy affects the total economy and lifestyle of all Americans. To seriously address issues like poverty and the needs of our aging population, we must consider affordable housing for everyone. It is the only way to protect future generations of hard-working Americans in every state from having their dreams of home ownership evaporate away before their eyes.

Title insurance protects the current home owner and their heirs. A standard title insurance policy will usually protect against fraud, forgeries, and other title issues. For more complete coverage, talk to your title insurance representative.

Home owners, winter storms and falling trees

During the fall and winter months, hundreds of trees will be falling in yards and on houses across America. The problem begins during hurricane season and continues through winter. Heavy snows and ice storms frequently get the best of century-old trees. The odds of your home (and you) been struck by a falling tree increase based on the age of the trees nearest your house. Here are a few other things to know and to help you in the event your house is struck by a falling tree.

Who is responsible?

If a tree falls on your house, most likely your homeowners insurance will have to pay for damages. If a tree falls in your yard and does not damage your home, most likely you will be responsible for the clean up out-of-pocket. Even if the tree was located on your neighbor's property, you could still have to make the claim on your policy, pay the deductible, and be responsible for any cost not covered by your policy. If your insurance policy is basic and for your residence only, it may not cover damage done to outbuildings, fencing, pools, or your lawn. The reverse is typically true if a tree from your yard falls on a neighbor's house. The exceptions are when the tree fell due to disease or was properly documented as being a hazard.

Identifying diseased trees

Just like people, as trees age, they become more susceptible to disease and falls. During the first 25 years of a tree's life, it should not lose a notable amount of limbs. As it gets older, limbs fall off more frequently and the size of the falling limbs increases. This is why the Arbor Day Foundation recommends having a trained arborist inspect older trees and advise on proper care. Some basic identifiers indicate a diseased tree:

Uneven growth patterns: previous damage from storms or wind can cause trees to grow lopsided and be a higher risk for falling.

Decay: Because decay often begins inside the tree, look for signs like mushrooms, fungi, and soft crumbly wood. Mistletoe is also a fungus. Its presence indicates some internal decay.

Dead wood: Occasional dead branches are normal for any mature tree. Any large branches that show signs of dryness and bark loss should be removed immediately.

Cracks: Deep splits in limbs or spots with missing bark indicate the tree's structure is failing.
Documenting a hazardous tree

Start by discussing your concern with your neighbor. It is a good idea to document your request that they remove a hazardous tree. Additionally, photos and an assessment of the situation by a tree professional may help your case in the event the problem tree does tumble. It is still possible your home insurance will have to pay for damages, but having the documentation improves the likelihood that your neighbor will have to foot the bill. It is far better than just you saying "I knew it was going to fall" after the fact.

If a tree falls on your home

Falling trees may also bring down power lines. If you are inside the home, cautiously exit the structure. The weight of the tree against your house is causing continuous pressure. The roof and other support structures do not always give way immediately. If power lines are down, call the police, power company, and then your insurance company.

Do not try to make repairs during a storm or rescue personal items. Understand that emergency services are stretched thin during inclement weather, and there are numerous other people in a similar situation. If a tree falls on your automobile, it is going to be a matter for your auto insurance and probably covered by comprehensive insurance. When it comes to falling trees, a few hundred dollars in prevention can be worth tens of thousands of dollars in repair.