California’s gubernatorial candidates want developers building 500K homes a year

The ambitious goal aims to put a dent in the state’s severe housing crisis

Los Angeles /
Mar.March 07, 2018 09:00 AM
Home under construction, with Gavin Newsom, left, and Antonio Villaraigosa, right (Getty)

The race for the governor’s seat in California is on, and the state’s affordable housing crisis is taking center stage for at least two of the leading candidates.

Lt. Gov. Gavin Newsom and former Los Angeles Mayor Antonio Villaraigosa say they want developers building half a million homes a year to combat the state’s severe housing crisis, the Los Angeles Times reported.

That would mean a total of 3.5 million new homes would be built, from the governor’s inauguration in 2019 until 2025.

But that goal is considered unrealistic by many, especially those who look to California’s slow-building past as a reality check.

Since 1954, there have only been two instances where developers built over 300,000 homes in a year. To hit the 500,000 mark, the state would have to triple the historical average and quadruple last year’s production. In Los Angeles, where there is a severe lack of affordable housing, the city has encouraged developers by loosening zoning and vehicle parking restrictions for new constructions that include affordable units.

Newsom has proposed spending millions on low-income homes, and setting up a rewards system for cities and counties that build near transit. Villaraigosa suggests isolating property tax dollars for low-income housing and easing the loan process for homeowners who build so-called “granny flats.”

While there have been no explicit plans detailing the logistics of the proposed housing construction boom, both candidates have said they expect their statements will keep them accountable.

The declarations could not come at a worse time for the homebuilding industry, which is grappling with a sharp increase in construction costs. Last week, President Trump hiked tariffs on steel and aluminum imports, months after setting a 20 percent tax on Canadian lumber. [LAT] — Natalie Hoberman


Related Articles

arrow_forward_ios
California Association of Realtors' Dave Walsh and Senator Sydney Kamlager (LinkedIn, California State Senate)
Legislature passes LACAHSA bill opposed by industry groups
Legislature passes LACAHSA bill opposed by industry groups
Los Angeles city councilmember John Lee, Dan Yukelson (John Lee, LinkedIn, Getty)
LA’s eviction moratorium continues for at least a month
LA’s eviction moratorium continues for at least a month
Stan Smith and Assemblymember Jacqui Irwin (Jacqui Irwin, Stan Smith, Getty)
New law changes requirements to take California broker exam
New law changes requirements to take California broker exam
Bill Cooper, Matthew Berkley, and clock tower for Eastern Columbia Lofts (Bill Cooper, Matthew Berkley, Andrew Asch of The Real Deal)
Reform of historic property taxes could impact brokers
Reform of historic property taxes could impact brokers
The Clark Hotel, Vacant
Chetrit’s Clark Hotel faces rare public criticism
Chetrit’s Clark Hotel faces rare public criticism
Hackman Capital Partners' Michael Hackman and developer Rick Caruso with CBS Television City (Hackman Capital Partners, Getty Images, Google Maps)
Rick Caruso in spat over CBS Television City expansion
Rick Caruso in spat over CBS Television City expansion
Kevin De Leon and Matt Baron (Ballotpedia, Getty, Loopnet, Baron property group)
Cecil Hotel, Project Roomkey addressed by LA Homelessness Committee
Cecil Hotel, Project Roomkey addressed by LA Homelessness Committee
Dan Yukelson and Mayor Sue Himmelrich (LinkedIn, Getty Images)
Santa Monica puts rent control measure on November ballot
Santa Monica puts rent control measure on November ballot
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...