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Report Finds California's Pro-Housing Laws Have Minimal Impact on Housing Supply

A new analysis highlights significant barriers and limited uptake of state laws aimed at increasing housing construction.

New homes are under construction in the Great Park Neighborhoods in Irvine, CA, on Monday, Aug. 19, 2024. (Photo by Jeff Gritchen, Orange County Register/SCNG)
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Overview

  • A report by YIMBY Law concludes that five California housing laws passed since 2021 have had 'limited to no impact' on the state's housing supply.
  • Key laws, such as SB 9 allowing single-family homes to be split into duplexes and SB 4 enabling affordable housing on church properties, have seen very few projects initiated.
  • Barriers include stringent labor requirements, affordability mandates, and opposition from local governments, which have imposed restrictive ordinances to limit the laws' effectiveness.
  • Broader challenges like high interest rates, labor shortages, and rising construction costs further deter housing development in the state.
  • Accessory Dwelling Units (ADUs) remain a rare success, with over 28,000 permitted in 2023, attributed to fewer regulatory hurdles compared to other housing initiatives.