A measure that would allow local governments to force developers to include more low-income housing within their projects passed the Assembly Thursday.
Assemblyman Matthew Harper (R-Huntington Beach) argued that the bill would raise costs for developers and therefore reduce their ability to produce the broad housing stock the state needs to control prices.
This report analyzes the potential effects from recently adopted and currently proposed regulations having significant effects on the cost of new housing in California. Specifically, these regulations considered include proposals that would require all housing in California to be built while paying workers at prevailing wage levels along with Zero Net Energy requirements, increasing local requirements for affordable units, and offsets, VMT reduction, and other measures related to the state’s climate change policies.
In recent years, a number of studies (e.g., The White House, September 2016; Furman, November 2015; Shoag & Ganons, August 2016; Glaeser & Gyourko, January 2017) have identi ed the outcome of increasingly stringent land use regulation in limiting housing supply and thereby increasing housing costs particularly in coastal urban areas. Similarly, a number of studies have assessed the signi cance of these regulations speci cally on California’s soaring housing costs (e.g., California Department of Housing & Community Development, January 2017; Legislative Analysts’ Of ce, March 2015 & March 2017; McKinsey Global Institute, October 2016; Next10, March 2016).
In the span of a few decades, Los Angeles area construction went from an industry that was two-thirds white, and largely unionized, to one that is overwhelmingly Latino, mostly nonunion and heavily reliant on immigrants, according to a Los Angeles Times review of federal data.
At the same time, the job got less lucrative. American construction workers today make $5 an hour less than they did in the early 1970s, after adjusting for inflation.
The decline in homeownership rates to near 50-year lows is partly to blame for the U.S. economy’s sluggish recovery from the last recession, new data suggest.
If the home-building industry had returned to the long-term average level of construction, it would have added more than $300 billion to the economy last year, or a 1.8% boost to gross domestic product, according to a study expected to be released Monday by the Rosen Consulting Group, a real-estate consultant.