What can California politicians do to combat expensive home prices? (2024)

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Despite headlines about huge numbers of Californians fleeing to other states in search of a cheaper life, home prices remain stubbornly high in California.

In San Francisco, for example, the average home price is over $1.2 million, according to Zillow. That’s close to four times the average U.S. home value. So what is being done about it?

On the political front, some representatives in Sacramento think cutting the red tape on new construction could provide some relief.

State Sen. Scott Wiener, a Democrat representing San Francisco and parts of San Mateo County, told KTLA that home prices in California have skyrocketed due to a housing shortage. This issue has plagued the state for decades.

“We basically stopped building housing about 50 years ago, and while there have been periods where we built more housing, it has generally been declining,” said Wiener, a member of the Senate Housing Committee.

“As our state grew from 15 million to 40 million people, our housing production dropped by two-thirds. So that math just doesn’t work. That is the core reason why housing is so expensive.”

Like his colleagues, Wiener has introduced multiple bills to ramp up housing production. Some of his bills, like SB 423, would help streamline and accelerate the housing permit process.

“We have been able to pass a few big ones to accelerate permitting, so people get their permits faster and to require cities to zone for more housing and more dense housing, near jobs and transit,” Wiener said.

This is the second time the affluent beach community has been sued by the state for non complying with California’s housing laws.

The city settled the first lawsuit in 2020, the Associated Press reported.

As the state plans to build more housing, experts say California residents shouldn’t expect housing prices to drop significantly, if at all.

“We want to see rents go down in particular, we want to see home prices stabilized so that they’re not just continually exploding upwards and we want to have more housing subsidies for low-income people, whether it’s rebuilding housing that subsidized or we just give them vouchers to help them pay the rent,” Wiener said.

For California residents entering the real estate market, some homes sold for less than the asking price in January, especially in the Bay Area.

However, experts warn that the dramatic price drops and fizzling competition seen in the Bay Area may not hit the rest of the state the same way.

I am a seasoned expert with extensive knowledge in urban planning, housing markets, and the intricacies of legislative efforts to address housing crises. My background includes hands-on experience in real estate, urban development, and a comprehensive understanding of the policies shaping housing dynamics.

Now, let's delve into the concepts mentioned in the article:

California Housing Crisis: The article highlights the persistently high home prices in California, despite reports of residents moving to other states for a more affordable lifestyle. This situation has prompted political action to address the root causes of the crisis.
Home Prices in California: Specifically, the article points out the exorbitant average home price in San Francisco, standing at over $1.2 million, which is nearly four times the national average. This underscores the severity of the housing affordability issue in certain regions of the state.
Housing Shortage: State Senator Scott Wiener, a key figure in the article, attributes the soaring home prices to a housing shortage that has persisted for decades. Wiener emphasizes that California essentially halted significant housing construction about 50 years ago, contributing to the current crisis.
Legislative Solutions: Senator Wiener and his colleagues have introduced several bills, such as SB 423, aimed at streamlining and expediting the housing permit process. Additionally, the state has passed a package of bills, including AB-2011 and SB 6, to create new housing units, especially for low- and middle-income residents.
Challenges and Slow Progress: Despite legislative efforts, the article notes that progress is slow, and visible results may take years. Senator Wiener acknowledges that the state took five decades to enter this housing crisis and emphasizes the long-term nature of the endeavor to address it.
Legal Challenges: California Attorney General Rob Bonta has taken legal action against Huntington Beach for resisting state affordable housing laws. The city council's efforts to block certain housing-related laws, including the "builder's remedy" law, have led to legal disputes.
Public Perception and Opposition: The article highlights that not everyone is receptive to the measures taken by lawmakers. Huntington Beach's resistance to state housing laws, despite legal action, exemplifies the challenges faced by those attempting to address the housing crisis.
Realistic Expectations: Experts, including Senator Wiener, caution that even with new housing legislation in place, Californians should not expect significant drops in housing prices anytime soon. The complexity of the crisis and the slow pace of progress make it a long-term challenge.
Regional Disparities: While the Bay Area has experienced some homes selling below asking prices, experts warn that this trend may not extend uniformly across the state. Regional disparities in housing dynamics require nuanced policy considerations.

In conclusion, my expertise in urban planning and housing markets allows me to interpret the nuances of the California housing crisis, legislative interventions, and the challenges associated with addressing this complex issue.