California has a severe shortage of affordable rental housing, but also has a crisis in homeownership, with the nation’s second most expensive home market relative to family incomes.

Despite forecasts for a cooling housing market in 2022, U.S. home prices are still hitting record highs, even with mortgage rates surging in recent months. WSJ’s Dion Rabouin explains what’s driving demand, evidence of a slowdown on the horizon, and what that could mean for the economy.

Much has been made about the persistent disagreement between Gov. Gavin Newsom and state lawmakers over how to put money back in the pockets of Californians reeling from high gas prices and the rising cost of living, but what about addressing the state’s perennial problem — housing?

A year after the creation of sweeping laws to increase the construction of duplexes and small apartment buildings, California lawmakers have turned their attention to money for affordable housing and easing the burdens of homeownership for first-time buyers.

Both Republican and Democrat lawmakers took to the steps of the Capitol Tuesday. They said homeownership provides economic stability and creates generational wealth.