California’s Housing Crisis Needs More Than Just “Build, Build, Build”!

The Palisades and Eaton fires have caused great loss, not just in terms of personal tragedies but also in worsening California’s housing crisis.

The state was already struggling with a housing shortage, and these fires have made things worse. This crisis isn’t just because of natural disasters; it is also due to poor policies.

Housing Costs Are Out of Control

Governor Gavin Newsom recently bought a $9-million home, but many Californians can’t even afford basic housing. The state has introduced reforms to make housing more affordable, but little has changed.

Home prices in coastal California are nearly 400% higher than the national average.

Across the state, the median home price is 2.5 times higher than the rest of the country.

Only 56% of Californians own homes, making it the second lowest homeownership rate in the country, just above New York at 54%.

Renting isn’t any easier. The average rent for a two-bedroom apartment in Los Angeles is nearly $3,000 per month, which is about $1,000 more than the national average.

Older Generations Benefit, But Young People Struggle

Many older Californians, especially baby boomers who bought homes years ago, have benefited from rising home prices. They and Gen Xers have homeownership rates similar to the national average.

But for younger Californians under 35, homeownership rates are much lower. Because of high living costs, many young people are leaving California for more affordable states.

Why Is Housing So Expensive?

One major reason for California’s housing crisis is the strict rules on construction and legal challenges against developers.

For years, not enough housing units were built. Now, the state is pushing for more dense housing in big cities near public transport. But this solution is not working.

Building new apartments in cities is expensive. Land is costly, and construction materials and labor wages add to the price.

Complicated permits, zoning rules, and other government fees make things worse. Adding more high-rise apartments along major roads may increase the housing supply, but they don’t do much to lower costs.

Californians Prefer Single-Family Homes

Most people in California don’t want to live in high-rise apartments. A survey by the Public Policy Institute of California found that 70% of people prefer single-family homes.

In 2021, Governor Newsom signed a law (Senate Bill 9) that removed single-family zoning in many places. However, a court later overturned the law, and it is now being appealed.

Are Climate Policies Making Things Worse?

California supports high-density housing because of climate goals. The idea is that tall apartment buildings are more energy-efficient and reduce car usage.

However recent studies show that bigger buildings don’t always mean more sustainability. Many people would rather commute longer distances to buy an affordable home than rent in the city.

Others are leaving the state entirely. A study by land use attorney Jennifer L. Hernandez found that climate rules have led to fewer houses being built at higher prices.

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What Can Be Done to Fix This?

Some believe that California should invest more in public housing, like the redevelopment of Jordan Downs in Los Angeles.

However, with budget issues at both state and city levels, this may not be possible. Also, most Californians don’t want public housing—they want affordable homes they can own.

A better solution would be to speed up the permit process and remove some of the strict regulations for new home construction.

Instead of forcing cities to build high-rise apartments, the state should support townhomes and single-family housing based on what people want.

Another option is to encourage housing development in less expensive inland areas.

With more people working remotely, it makes sense to build new homes in places where land is cheaper.

Planned communities in places like Inland California and the Central Valley, with local businesses, could help solve the housing crisis.

California Needs More Housing Choices

California needs better housing policies that provide real options for people looking for affordable homes.

If the state wants to stay in a place where people can succeed, it must rethink its housing strategies and make it easier for families to find affordable homes.

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