California has a housing problem - the median price of a home is about $570,000, according to the California Association of Realtors, and there just aren't enough affordable homes available. Job growth and the state's economy are going strong but the real estate market is softening. Governor Gavin Newsom has promised to increase the supply of affordable housing, setting a goal of 3.5 million new homes by 2025. But this doesn't necessarily help renters who can't afford to buy a home. Businesses in some areas are now finding it hard to recruit and keep employees because of this issue and some companies are even relocating to other states. So how can this be addressed? Todd Sinai is a Wharton Professor of Real Estate and Business Economics, Susan Wachter is a Professor of Real Estate and Finance, as well as Co-Director of the Penn Institute for Urban Research at Wharton and Billy Riggs is an Assistant Professor in the Management School at the University of San Francisco.