...
In California, the middle class really is disappearing, not into the proletariat or the ranks of the rich, but into sensibly run states such as Texas, Arizona, Idaho, and Nevada. Not only is the Golden State suffering negative domestic net migration overall, but every income group below $110,000 per year is leaving. The state’s middle-income earners are selling their homes and heading for cheaper and often safer and cleaner places. The fleeing middle class is being replaced on the one hand by new border-crossers, usually at the bottom of the income scale, and by a trickle of rich people from other states.
The immense cost of housing, due to NIMBY (not in my backyard) building restrictions, fosters this extreme inequality. In San Francisco, it’s gotten so bad that families making six-figure salaries there are now considered low-income and qualify for “affordable” housing.
So, you wouldn’t expect to see California create new policies that will further increase the cost of each housing unit by $10,000.
Except that it’s California, so of course that’s what it’s doing. The California Energy Commission has imposed a new requirement that residential solar arrays be included with all new housing. A set of accompanying energy efficiency regulations could increase new housing costs by up to another $15,000 beyond that.
As for the other supposed benefits of the solar panels, the commission has chosen perhaps the least efficient method for adding new electrical generation capacity to the grid. (Perhaps we should be thankful that it isn’t requiring each resident to spend 15 minutes on a treadmill every day — not to give them any ideas!)
Contrary to what some advocates have claimed, this housing price hike/solar installer subsidy will drive up the cost of all housing in California, not just of new buildings but also those too large to qualify for an exemption. The older and smaller homes competing with them will also become more expensive.
It adds insult to injury that taxpayers who don’t even live in California will be forced to help pay for all this nonsense through the federal tax code.
...
Connect With Us