California’s Regulatory Hostility Prevents More New Homes

The median home price in Los Angeles County is $618,000. In Santa Clara County it’s $1.2 million. In the entire state of California, including the somewhat more “affordable” inland counties, the median home price is $548,000.

The national median home price? $227,000.

There’s a reason for this. For decades, California’s state and local governments have made it harder and more expensive for any builder to construct new housing. In most other states, the governing agencies want more housing and they try to make it easier for builders. In California, the exact opposite is the case.

The consequences of this hostile shake-down of builders by California’s state and local governments are a housing shortage, unaffordable homes, an exacerbated homeless crisis, and increased calls for rent control (which will create even more disincentives for home builders).

The response of California’s policymakers to the housing shortage they created is not to address the punitive fees and permitting delays, but to try to cram high density housing projects down the throats of local communities, accusing them of nimbyism – the “not in my backyard” syndrome. The problem with this accusation is that no sane person wants an apartment building plopped next door to them in a neighborhood that used to be single family dwellings. If “nimbyism” means stop destroying well established and tranquil low density neighborhoods with mandated high density projects, then California needs more nimbyism, not less.

Along with punitive fees and permitting delays is a bias against any […] Read More