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"Besides the taxes, there’s California housing. 'There’s a much higher cost of housing for employees here,' said Eric Sussman, an adjunct professor of accounting at UCLA. 'You can retain talent at lower wages in Dallas.'
California could reach a point, Sussman said, where further corporate taxes could mean a 'net loss of state revenue' due to the exodus."
“'It’s pretty unbelievable,” said Eric Sussman, UCLA professor of finance. 'Things that ought to be passed by our legislators are relegated to completely uninformed voters. Even educated people don’t understand these initiatives.'”
"Though RealPage’s data doesn’t indicate that Los Angeles renters are particularly hard-hit by the pandemic compared to renters in other cities, a report published by UCLA’s Lewis Center for
Regional Policy Studies suggests an additional layer to the story: that perhaps LA renters are going to unsustainable lengths to make their rent payments on time.
'Paying on time and in full, in other words, should not be mistaken for ‘having no problems’ paying rent,' the report said.
The report COVID-19 and Renter Distress used data from two sources: the U.S. Census Bureau’s Household Pulse Survey, which the bureau undertook specifically to gather data on how American households have been affected by the pandemic. It includes questions about late rent payment and a more detailed survey of 1,000 LA County households conducted by a third party for UCLA.
The report was co-authored by USC Lusk Center for Real Estate Director Richard Green and UCLA Luskin School of Public Affairs associate professors Michael Lens, Michael Manville and Paavo Monkkonen."
"The timing of launching a public REIT focused on affordable housing right now did not strike Stuart Gabriel, the director of the Richard S. Ziman Center for Real Estate at UCLA, as odd. 'A lot of people are out of work or hanging on by a thread. In some parts of the country there is an almost unlimited demand for affordable housing,' Gabriel said."
“'It’s going to have a material and profound impact on our state, and on virtually every property type,' said Eric Sussman, professor at the UCLA Ziman Center for Real Estate. 'People think that if they don’t live in at-risk areas, they’re not going to be affected, but that’s wrong. Insurance works from all of us collectively sharing risks.'”
"When the pandemic hit in March, and the economy started to tank, but the housing market so far hasn’t crashed. In August, the median home price in the region reached a record-breaking $600,000, which is up 12% compared to the same time last year. It’s a seller’s market for single family homes.
"But it’s turning into a renter’s market for apartments. Rent prices are falling in Los Angeles. The median price for a one-bedroom last month was around $2,000 a month, which is down 11% from last year.
"How are both of these things happening at the same time? And what about commercial real estate, with a large number of folks no longer needing office space at the moment?"
Guest: Eric Sussman - Professor in accounting and real estate, UCLA’s Anderson School of Management
Host: Steve Chiotakis
Producers: Christian Bordal, Jenna Kagel
[KCRW: 10/06/2020]
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