Housing Policies in California Cities: Seeking Local Solutions to a Statewide Shortfall
March 09, 2019 by Dr. Sarah Mawhorter’s working paper, the first in a series utilizing the Terner Center California Residential Land Use Survey, addresses California’s severe housing shortfall. Between 2007 and 2017, the state failed to meet its housing needs by over 1.1 million units. This shortfall, exacerbated by soaring rents and home prices, especially in the San Francisco Bay Area and Los Angeles, significantly impacts young adults’ ability to form households and pursue homeownership. The paper investigates how local characteristics and policies influence housing development. It finds that cities with better job access build more housing, while those with older housing stocks, higher homeownership, and vacancy rates build less. Local land use policies also play a critical role, with longer approval times and high parking requirements hindering development. Conversely, cities with inclusionary housing incentives and shorter approval timelines see more single-family home production. To address the crisis, Mawhorter suggests several policy improvements: zoning for multifamily development, reducing parking requirements, and streamlining approval processes. Implementing these policies can help stabilize housing markets and support the financial future of California’s residents.