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CALIFORNIA
California Establishes Mortgage-Free Living
On October 2, California Governor Jerry Brown signed legis-
lation to solve affordable housing issues, one of the biggest issues
the state is now facing, but a recent report by the Orange County
Register says despite those problems, two million Californians are
living mortgage free.
According to the report, 29 percent of all owner-occupied
residences in the state were mortgage-free, up from 23 percent a
decade ago, which is interesting considering the current state of
housing affordability and slipping ownership numbers.
"California's debt-free flock has grown by 339,000 homes—20
percent—in a decade," the report said. "Meanwhile, California
homeowners with mortgages have dropped by 498,000—20 per-
cent—to 4.93 million since 2006, the peak of an easy-lending era."
Compared to the nation, which has only grown by 14 percent
in the last decade, the article attributes California's increased
mortgage-free living to years of historically low-interest rates,
causing owners to use savings to pay off a mortgage or buy in
all-cash deals.
"Mortgage-free living is equally common throughout South-
ern California counties, with the share of occupied homes having
no mortgage relatively the same in all four counties at slightly
more than 1-in-4 last year," the report said.
Census data show that mortgage-free homeowners in Califor-
nia are paying about $546 a month, which is compared to an aver-
age $2,188 for an owner with a mortgage and $1,375 for a renter.
ese reasons make the 15-bill package signed by Gov. Brown
important to many homeowners and renters in the state.
"ese new laws will help cut red tape and encourage more
affordable housing, including shelter for the growing number of
homeless in California," Brown said in a statement.
e bills seek to amend zoning, low-income housing opportu-
nities, lower costs of construction, the speed of development, and
limiting regulation that prevents new developments from being
undertaken.
