06/27/2019

Developers And Unions “Not Close” On Deal To Spur Housing Construction

In January, two of the biggest adversaries in California housing politics appeared on the verge of detente.

California developers and the construction unions that build their homes were reportedly near a deal that both sides hoped would unleash a bounty of homebuilding across the state. Developers would agree to employ more unionized carpenters, plumbers and other skilled craft workers on more housing projects at higher wages. And in exchange, construction unions would push for a more streamlined housing approval process yearned for by developers for decades. Gov. Gavin Newsom’s administration was involved in the negotiations, hoping a deal could spur construction of the 3.5 million new homes Newsom is hoping to build by 2025 to alleviate the state’s housing shortage.

While both sides continue to characterize the negotiations as ongoing, the head of the developers’ primary lobbying group in Sacramento is increasingly pessimistic that a deal can be done anytime soon.

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