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New Water Restrictions Coming All Across California. What Will Be The Impact on House Prices?

New Water Restrictions Coming All Across California. What Will Be The Impact on House Prices?

The Golden State

Most experts agree that our beautiful state of California has an abundance of natural and human resources. If measured separately from the rest of the U.S., our state would be the world’s fifth-largest economy. After all, we nurtured the planet’s leading tech, entertainment, and defense industries. In addition, older economic sectors, such as agriculture, significantly contribute to California’s wealth.

California’s Achilles heel

But if we had to mention one single vulnerability to our economy and progress, that would be not enough water. California’s natural water sources are limited, and so is the capacity of the state’s reservoirs. And unfortunately, everything seems to indicate that the amount of water we will have in the following years will be less. 

We depend on the Sierra Nevada

A significant part of the water we enjoy in the Bay Area comes from the Sierra Nevada snow runoff. This mountain range runs through the eastern part of the state and stores water in the form of snow that slowly melts as Spring and Summer heat the environment. Unfortunately, climate change and dry spells allow for less snow accumulation and thus less water availability.

Government intervention starts

The state government has urged Californian water suppliers to step up their conservation efforts. So far, authorities did not impose or announced state-wide measures, but we might hear about those as the summer ensues. 

So it is up to every local government and local water supplier to establish a plan for conversation, distribution, and eventually, rationing. Most Americans take water for granted. We have water available 24/7 for our daily baths, pools, gardens, and many other uses that we give to this element. 

Learning from past experiences

History and economics have a great deal to tell us about societal changes when water becomes scarce. And obviously, housing developments are affected. It will become even more difficult to build new homes without water. This may not impact coastal cities as much, but for inland cities and towns, it will become difficult for builders to connect water hook-ups, for example. 

Say good-bye to your green lawn

Owning a property requires a lot of upkeep. Some highly prized features in existing homes, such as pools and sizable green front yards, may be impossible to keep with limited water supply. The average swimming pool requires 18,000-20,000 gallons of water to fill! And to keep your front lawn looking lush and green will take daily water. After all, water is life.

Renovations will be needed

We might even be forced to change bathroom and kitchen fixtures. California law is to employ water-saving fixtures in a home, and if you do not have them, you might have trouble when selling your house. Not all water-conservation fixtures are equal, especially not in our state. Equipment has to meet precise requirements to be “California compliant.” Always get the advice of a group of experts in local regulations before starting any renovations. 

Whatever the future holds in water and housing, you can count on the The Cal Agents and its associated renovation experts to help you make the best decisions. We have a team of home care professionals who can assist with your needs whether you need to update your plumbing, switch to water-conserving fixtures and appliances, etc. We understand that this is a new paradigm that needs to be carefully thought. If you have specific questions about your property or need advice on a project, contact us for a free consultation.

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Lex Shan

Lex is a real estate broker, real estate developer, entrepreneur and technologist. He has started an architectural design firm, real estate development private equity fund and California's largest real estate 3D marketing company.

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