California can expect to see continued job growth and lower unemployment over the next three years, but housing costs are expected to continue to rise, according to the UCLA Anderson Forecast released on Monday.

The forecast projects steady gains in employment through 2017 and estimated total employment would grow at a rate of 2.7 percent this year, 2.2 percent next year and 1.4 percent in 2017.

The state unemployment rate is expected to fall below 6 percent through the end of the year and to average about 5.2 percent next year before dipping to 4.8 percent in 2017. Those numbers are said to be in line with projections for the rest of the nation.

“Home prices in California will become increasingly less affordable over the next two years, as the amount of building will not meet new demand,” UCLA Anderson Forecast Senior Economist Jerry Nickelsburg said, according to the report.

The forecast said 1.14 million housing units will be started this year, rising to 1.42 million next year and 1.44 million units in 2017. However, the affordability of rental units is becoming a concern as 46 percent of renters – compared to 40 percent a decade ago – now spend more than 30 percent of their income on rent.