California housing shortage
[8] Several factors have together caused constraints on the construction of new housing (see 'California studies' under Growth management): density restrictions (e.g. single-family zoning) and high land cost conspire to keep land and housing prices high; community involvement in the permitting process allows current residents who oppose new construction (often referred to as NIMBYs) to lobby their city council to deny new development; environmental laws are often abused by local residents and others to block or gain concessions from new development (making it more costly or too expensive to be profitable); and construction costs are greater because of high impact fees and required use of union labor in some projects.
[9] The discretionary and burdensome regulatory framework for housing construction in California has created a fertile environment for political corruption, as local politicians take bribes and favors to help actors navigate the regulations.
[18] The Covid-19 pandemic led to people demanding more square footage, helping to keep rents and home prices high even as the state lost population and more apartments came online.
[34]: 1 Using various means (political pressure, protests, and voting power), NIMBYs try to keep newcomers out by defeating development projects in the local government permitting process, or slowing them down to the point that they become uneconomical for the builders.
[37] In 2022, California governor Gavin Newsom declared that "NIMBYism is destroying the state" and promised to hold cities and counties accountable for stopping new housing development.
[1]: 15 [47]: 1 [citation needed] A report by the California Legislative Analyst's Office found that in the state's 10 largest cities, CEQA appeals delayed projects by an average of two and a half years.
"[52]: 1 [45]: 1 In an interview with UCLA's Blueprint magazine, Governor Jerry Brown commented on the use of CEQA for other than environmental reasons: "But it's easier to build in Texas.
[48]: 7 Residential development is typically seen as a net loss to a city's budget due to costs associated with service delivery (public safety, roads, parks, etc.)
This effect (which is concurrent with reduction of municipal government funding via reduced property tax revenues) was noted to have occurred much more strongly in coastal California cities than those further inland.
[1]: 12 The Sacramento Bee notes that residential land prices are more than 600% greater in coastal California than the average of America's other large metropolitan areas.
[62] With quasi-judicial authority over zoning on the coastline and up to 5-mile inland (8.0 km), the California Coastal Commission has been an added hurdle for citizens and cities seeking to build housing.
[91] When Californians emigrate to states with higher per-capita greenhouse gas emissions, they drive more, consume more energy for air conditioning, and use more fossil fuel-dependent electricity generation.
[94]Scientists at the Renewable and Appropriate Energy Laboratory at the University of California, Berkeley recently found that infill development, that is utilizing existing vacant urban structures for future housing or commercial use, has the potential to reduce CO2 emissions; more so than any other option.
One such solution is the More Homes Act, which overrides restrictive zoning requirements by implementing small to midsize apartment buildings near major job and transit centers.
Such a reduction throughout California would bring costs down roughly to 2014 levels..."[115] In a 2018 UCLA Anderson Forecast report, economist Nickelsburg estimated the shortage at 3 million units.
[21]: 1 From 2013 to 2022, California's local governments (who control the home permitting process) approved 2.6 new housing units per 100 residents, significantly lower than the nationwide average of 3.9.
The report also highlighted one of President Obama's remarks to the U.S. Conference of Mayors on January 21, 2016: We can work together to break down rules that stand in the way of building new housing and that keep families from moving to growing, dynamic cities.In September 2016, Governor Jerry Brown signed AB 2406, AB 2299, and SB 1069, all of which reduce the cost and bureaucracy needed to construct an ADU (Accessory Dwelling Unit), also known as a "granny flat" or "in-law unit".
ft. and prohibits cities from limiting their numbers near universities or public transit;[137]: 1 another (SB 2) adds a $75 real-estate document recording fee (for everything other than property sales), which is projected to generate $250 million per year for affordable housing construction.
SB 478 also prevents local governments from imposing a lot coverage requirement that would make it impossible for a housing project to achieve its minimum floor area ratio.
[157] AB 2097 removes parking minimums for homes and commercial properties within one mile of public transit stations or in neighborhoods with low rates of car use.
[161][162] Following up on a 2019 executive order requiring the California Department of General Services to create a digitized inventory of excess state-owned properties and collaborate with the HCD and CalHFA to identify sites on state-owned parcels available for affordable housing, Newsom signed SB 561 and AB 2233 to codify the executive order and generate a periodic progress report to the Legislature.
In addition, Newsom signed AB 2592, requiring DGS to provide a report to the Legislature detailing a streamlined plan to transition underutilized multistory state buildings into housing.
[167] A UC Berkeley study found that this law opens up about 170,000 acres of land (about half the size of Los Angeles) for potential affordable housing development across the state.
Pro-housing advocates argue that housing must be built everywhere, but the coast provides an especially good opportunity as it is nearer to jobs, recreation, and less car-centric living, which ultimately means less pollution.
[171] The introduction of SB 555 indicates a shift in housing priorities, turning away from solely the private rental market or homeownership to explore alternative forms of tenure.
[172] SB 684 requires cities to ministerially allow property owners to subdivide multifamily lots to create subdivisions with up to 10 houses, townhouses or condos.
On August 27, Newsom signed two bills passed to address the crisis, including AB 2835, which allows motels and other temporary housing to allow homeless residents to stay for longer than 30 days without triggering local rent control laws, and AB 3057, which streamlines the approval process for the construction of ADUs by granted same exemption to environmental review for junior ADU ordinances as given to standard ADU ordinances.
[177] On September 19, Newsom signed a larger package of bills, including: In February 2024 (implemented in March 2024), the city of Sacramento passed the 2040 General Plan which updated the zoning code to eliminate parking minimums citywide for new housing.
In addition, the General Plan eliminated caps on the number of units that can be built in a single-family zone, instead allowing for property owners to construct multi-unit housing based on a floor area ratio citywide.
[179][180] In September 2024, the city council passed an ordinance allowing small apartment buildings up to three stories tall in all residential areas previously zoned for single-family housing, but maintained existing bulk control standards.
