Report: To cut housing prices 10 percent, California needs 20 percent more units

The quarterly UCLA Anderson Forecast casts doubt upon efforts in San Francisco and surrounding communities to lower the cost of living, suggesting that investments far beyond what is contemplated would be needed to stop folks from paying exorbitant prices for wallpapered shoeboxes within a scooter’s distance of San Francisco Bay.

Jerry Nickelsburg, director of the UCLA forecast team, said it would take 20 percent more housing to achieve a 10 percent reduction in prices. Such a reduction throughout California would bring costs down roughly to 2014 levels, he said, citing figures provided by the Legislative Analyst’s Office.

An increase of 20 percent would, by all accounts, be a daunting task. Starting in 1980, it took 30 years for Los Angeles and San Francisco to increase housing stock that much, according to a study by the legislative analyst.