Housing crisis

CA must build millions of homes by 2030 to tackle housing crisis

LOS ANGELES, CA – California needs to build millions of homes by 2030 to address severe housing supply and demand challenges.

That’s according to a new report released Wednesday by the California Department of Housing and Community Development, which is updated every four years and outlines challenges and strategies for dealing with the state’s housing crisis over the past of the next decade.

In its 2020 update, the report says California aims to add at least 2.5 million homes over the next eight years. Of these, at least 1 million must be targeted at low-income households.

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This number represents homes that cities and counties must zone by law. It’s also more than twice as much as planned housing over the last eight-year cycle.

  • Low income
  • Moderate income
  • Above moderate income

“We need new construction of all (housing) types, Megan Kirkeby, deputy director of housing policy at the state Department of Housing and Community Development, told the Orange County Register. “We are behind where we need to be.”

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The plan aims to help everyone from tenants to lawmakers, officials said in a press release.

“Even at a time of record economic growth and employment, too many Californians are feeling the pressure of stagnant wages and rising prices for basic necessities such as housing, health care, education and child care. ‘kids,’ Governor Gavin Newsom said. in a report.

The report comes after decades of soaring house prices and rents. In August 2021, the median sale price of a single-family home hit an all-time high of more than $827,000, according to the report.

“High housing costs threaten the California dream,” Kirkeby told CBSLA.

And California housing prices continue to climb, exacerbated by extreme supply and demand challenges.

A housing crisis that has been brewing for decades

California’s housing crisis did not happen overnight. It comes after half a century of housing underproduction, underscored by exclusionary policies that have left housing lagging behind need and driving up costs.

Millions of Californians have been severely affected, and low-income people and people of color have been disproportionately affected.

Today, one in three California households does not earn enough money to meet their basic needs, including food, health care, child care and transportation.

Other factors contributing to the housing crisis: opposition to neighborhood change; many varied and opaque regulatory hurdles; insufficient amount of land zoned and available for housing; lack of federal support; and high construction costs, among other factors.

In the previous cycle of housing needs, which ends in 2024, the state set a target of 1.2 million new units. By 2020, just over 588,000 units had been built, about half of what was needed.

“While there is still time to close the gap between housing need and housing supply in the previous housing cycle, it is expected that the state will not meet its housing goals – in particularly in the construction of housing units for low-income Californians,” the report said.

Ensure that more houses are built

In the new cycle of housing needs, the state is demanding local governments to plan more housing – and insisting that a much larger share of planned units be built.

The state outlined what it called “bold and urgent” actions to ensure that happens, including passing laws to streamline development and increasing funding for affordable housing. It also plans to enforce housing laws.

He also listed three goals for the next 10 years: keeping Californians in their homes, producing more affordable and climate-friendly homes, and addressing homelessness and housing needs.

“We don’t want to see people on the streets, we don’t want to see tent cities, we don’t want to see this crisis that just got very, very out of control,” said Kenra Lewis, executive director. for the Sacramento Housing Alliance, told CBSLA.

As California Patch previously reported, a bill introduced in the state Senate last month would reduce the costs of affordable housing projects by transferring reserve money from individual projects to a state-run common reserve. .

Senate Bill 948 would shift responsibility for so-called “transition reserves” — which have not seen much use for projects funded by the Department of Housing and Community Development — from individual projects to the state.

Matt Schwartz, president and CEO of the California Housing Partnership, said the legislation would “immediately reduce costs while protecting tenants and ensuring the long-term solvency of affordable housing.”

“Creating a system-wide insurance policy to replace large reserves previously tied up in individual properties will effectively reallocate tens of millions of dollars a year to help create more affordable housing,” a- he declared.

Last year, Newsom sign some of the biggest housing bills in years. More than one home would be allowed to be built on single-family lots, which comprise the vast majority of developable land in the state.