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45 <br /> HOUSING IN ORANGE COUNTY <br /> Challenges in the Market Make Addressing <br /> Orange County's Housing Costs Difficult <br /> • Construction costs have increased rapidly due to inflation in labor <br /> costs, higher materials costs, and tariffs. <br /> • Debt remains expensive for both investors in new buildings and <br /> homebuyers. <br /> • Incomes haven't increased as rapidly as other costs. <br /> • The federal government hasn't increased support for very affordable <br /> housing—though it did expand the LIHTC program in 2025. <br /> 1 N S T I T U T 1 <br />