Please ensure Javascript is enabled for purposes of website accessibility

Suspect Identified in Ambush Shooting That Killed 2 Idaho Firefighters

15 hours ago

Will Valadao Spoil Trump’s Plan for July 4th ‘Big Beautiful Bill’ Signing?

17 hours ago

Shaver Lake and Reedley 4th of July Shows Are Wednesday. Who Else Is Celebrating?

20 hours ago

Elon Musk Says Senate Bill Would Destroy Jobs and Harm US

20 hours ago

Israel Strikes Pound Gaza, Killing 60, Ahead of US Talks on Ceasefire

21 hours ago

Trump’s Administration Finds Harvard Violated Students’ Civil Rights, WSJ Reports

22 hours ago

How Did the Supreme Court Rule? Here’s a Look at the Big Cases

3 days ago
Walters: Housing Crisis — Fits and Starts
dan_walters
By Dan Walters, CalMatters Commentary
Published 6 years ago on
November 10, 2019

Share

The latest developments in California’s housing crisis are, as usual, mixed.
In September, according to the Legislature’s budget analyst, permits for 10,580 new housing units were issued, a 13% increase from August and a 40% boost from September 2018.


Dan Walters
Opinion
However, overall housing starts are still running below 2018’s level, meaning the net gain for the year, including housing that’s burned or been demolished, will likely be well below 100,000 units, or about half of what the state says we need to build each year.
There was better news in an announcement from Apple, Inc., that it is committing $2.5 billion to housing construction and mortgage assistance in the San Francisco Bay Area. That would more than double the two $1 billion housing investments previously announced by Silicon Valley behemoths Alphabet, parent company of Google, and Facebook.
It calls to mind the observation attributed to the late Sen. Everett Dirksen: “A billion here, a billion there, pretty soon you’re talking real money.”
Yes, $4.5 billion is real money in anyone’s language, as is the $6 billion state housing bond that voters approved last year.

All of the Hurdles Are Becoming Higher

But as large as these amounts appear, they pale when placed in context.
Housing production in California is running at least 80,000 units a year below what the state says is necessary to keep up with population growth and make a dent in a very large backlog that has sent housing costs skyrocketing.
The state also calculates that building one unit of so-called “affordable” housing — available to low- and moderate-income families — costs about $350,000 statewide, and twice that much in the Bay Area.
So even using the average cost, increasing production by 80,000 units a year would require another $30 billion investment every year, not just the one-time injections from state bonds or high-tech employers.
Moreover, even if developers (and their bankers) are willing to put that kind of money into housing, they must clear several other hurdles, such as having land zoned, specific projects approved and, finally, recruiting enough carpenters, plumbers, electricians and other workers to build.
All of those hurdles are becoming higher, particularly those controlled by local governments whose constituents tend to oppose anything that will bring more traffic congestion and other downside factors to their neighborhoods.

Photo of Gov. Gavin Newsom
Gov. Gavin Newsom at the California Democratic Convention in San Francisco on June 1. Photo by Ben Christopher for CALmatters.

Newsom Set a Goal of Building 3.5 Million New Housing Units by 2025

The not-in-my-backyard sentiment is powerful. It explains, for instance, why cities successfully opposed legislation, Senate Bill 50, that would have overridden their much-cherished control over land use issues for some kinds of housing.

“The sky-high cost of housing — both for homeowners and renters — is the defining quality-of-life concern for millions of families across this state, one that can only be fixed by building more housing.” — Gov. Gavin Newsom
Gov. Gavin Newsom had called on the high-tech community to help solve the housing crisis its explosive prosperity helped create and, therefore, was quoted in Apple’s announcement as praising the company’s commitment.
“The sky-high cost of housing — both for homeowners and renters — is the defining quality-of-life concern for millions of families across this state, one that can only be fixed by building more housing,” Newsom said in the announcement.
True enough, and the high-tech industry’s commitment will help, but only a tiny bit at the margins — and assuming it can overcome other impediments to construction. SB 50 would have been a serious step toward ramping up construction, albeit only one of many needed, but Newsom was noticeably quiet when the state Senate killed the bill without even a vote, and he signed a rent control bill that sends the wrong signal to housing developers.
During his campaign for governor, Newsom set a goal of building 3.5 million new housing units by 2025, or 500,000 a year. Housing production is a fraction of that level and is, if anything, declining.
CalMatters is a public interest journalism venture committed to explaining how California’s state Capitol works and why it matters. For more stories by Dan Walters, go to calmatters.org/commentary
[activecampaign form=31]

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Clovis Police Seek Public’s Help in Finding Missing 82-Year-Old Woman

DON'T MISS

Fresno Woman Killed in Head-On Collision, CHP Investigating

DON'T MISS

Musk Vows to Punish Lawmakers Who Back Trump’s Spending Bill

DON'T MISS

Fresno Man Sentenced to Nearly 6 Years for $4.2 Million Tech Startup Fraud

DON'T MISS

Bryan Kohberger Pleads Guilty in Murders of Four Idaho Students, ABC News Reports

DON'T MISS

Wildfire Near Lake Madera Country Estates Burns 12 Acres, Now 100% Contained

DON'T MISS

Fresno County CHP Arrest Two in Interstate 5 Drug, Gun, and Counterfeit Money Bust

DON'T MISS

California Seizes Over 600,000 Pounds of Illegal Fireworks. Newsom Calls for Safe Celebrations

DON'T MISS

Where Trade Talks Stand With Major US Partners Ahead of Tariffs-Hike Deadline

DON'T MISS

Labor Icon Huerta Breaks Ground on Fresno Park Bearing Her Name

UP NEXT

I Detest Netanyahu, but on Some Things He’s Actually Right

UP NEXT

Much of LA’s Community of Immigrants Is Hiding, Leaving a Hole in the Fabric of the City

UP NEXT

Things Netanyahu Might Say if Injected With Truth Serum

UP NEXT

California Politicians Ignore Ag’s Troubles, but Boost Movie Business

UP NEXT

Trump’s Courageous and Correct Decision to Bomb Iran

UP NEXT

How the Attacks on Iran Are Part of a Much Bigger Global Struggle

UP NEXT

Groceries Are Now a Luxury. So Is Breathing.

UP NEXT

California Politicians Agree on School Money, but Poor Test Scores Need Attention

UP NEXT

Sen. Alex Padilla: This Is How an Administration Acts When It’s Afraid

UP NEXT

Bay Area Transit Systems Want More Money. But Their Payrolls Soared as Ridership Declined

Fresno Man Sentenced to Nearly 6 Years for $4.2 Million Tech Startup Fraud

14 hours ago

Bryan Kohberger Pleads Guilty in Murders of Four Idaho Students, ABC News Reports

14 hours ago

Wildfire Near Lake Madera Country Estates Burns 12 Acres, Now 100% Contained

14 hours ago

Fresno County CHP Arrest Two in Interstate 5 Drug, Gun, and Counterfeit Money Bust

14 hours ago

California Seizes Over 600,000 Pounds of Illegal Fireworks. Newsom Calls for Safe Celebrations

14 hours ago

Where Trade Talks Stand With Major US Partners Ahead of Tariffs-Hike Deadline

15 hours ago

Labor Icon Huerta Breaks Ground on Fresno Park Bearing Her Name

15 hours ago

DOJ Announces Arrest, Indictments in North Korean IT Worker Scheme

15 hours ago

Fresno Man Arrested in Clovis for Sex-Related Crimes Against Minor

15 hours ago

Dyer’s Lobbying Works. Fresno Gets $100M for Downtown From State

15 hours ago

Clovis Police Seek Public’s Help in Finding Missing 82-Year-Old Woman

The Clovis Police Department is asking for the public’s help in locating an at-risk missing adult last seen on Thursday. Pathmani Goonawarde...

12 hours ago

Clovis Police are searching for Pathmani Goonawardena, 82, who went missing nearly three weeks ago and was last seen driving a white Volvo near Copper and Auberry, possibly en route to Coarsegold. (CHP)
12 hours ago

Clovis Police Seek Public’s Help in Finding Missing 82-Year-Old Woman

fresno
13 hours ago

Fresno Woman Killed in Head-On Collision, CHP Investigating

President Donald Trump and Elon Musk attend a press conference in the Oval Office of the White House in Washington, D.C., U.S., May 30, 2025. (Reuters File)
14 hours ago

Musk Vows to Punish Lawmakers Who Back Trump’s Spending Bill

14 hours ago

Fresno Man Sentenced to Nearly 6 Years for $4.2 Million Tech Startup Fraud

Bryan Koberger, who is accused of killing four University of Idaho students, listens during a hearing to overturn his grand jury indictment in Moscow, Idaho, U.S., October 26, 2023. (Reuters File)
14 hours ago

Bryan Kohberger Pleads Guilty in Murders of Four Idaho Students, ABC News Reports

The Blanca Fire, burning 12 acres northwest of Lake Madera Country Estates in Madera County, remains active with 0% containment and no reported injuries or structural damage as the cause is under investigation as of Monday, June 30, 2025. (CalFire)
14 hours ago

Wildfire Near Lake Madera Country Estates Burns 12 Acres, Now 100% Contained

Fresno County CHP arrested two on Interstate 5 after finding about one kilogram of suspected cocaine, a loaded ghost gun, and counterfeit money during a vehicle search on Sunday, June 29, 2025. (CHP)
14 hours ago

Fresno County CHP Arrest Two in Interstate 5 Drug, Gun, and Counterfeit Money Bust

Gov. Newsom warns Californians to celebrate the Fourth of July safely, emphasizing zero tolerance for illegal fireworks which have surged to over 600,000 pounds seized this year. (Shutterstock)
14 hours ago

California Seizes Over 600,000 Pounds of Illegal Fireworks. Newsom Calls for Safe Celebrations

Help continue the work that gets you the news that matters most.

Search

Send this to a friend