Dan Walters: Will California politicians really address housing crisis or settle for tokenism?
Simple arithmetic reveals why permit streamlining is critical. The state says we need 180,000 new units of housing a year, but we’re building only 100,000 now. Closing that 80,000-unit gap would require more than $26 billion a year in additional investment at the average cost of $332,000 per unit for lower-end housing cited in Brown’s budget. Under even the best circumstances, therefore, the state could provide only a tiny fraction of the needed money, so making it easier for private and non-profit money to flow into actual construction is the most vital element of any package. The major pitfall is that faced with the difficult politics, Brown and legislators will settle for a token response – throwing a few billion dollars at the problem that won’t make even a small dent and failing to enact the regulatory reforms. That not only would ignore the most vital issue, but would allow politicians to claim a face-saving, undeserved victory, much as they did for a roadway improvement package that covers only a fraction of the unmet need.