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Impact By State

California

Overview

Like many other parts of the country, California's rapid growth has resulted in significant housing affordability challenges. Combatting housing affordability issues in the state will require effective solutions that address the needs of all California residents.

California has seen a sharp population increase, with 6.1% growth since 2010.

 6.4 million Californians call an apartment home, with demand on the rise.

76% of extremely low-income renters spend more than half of their income on housing.

Between now and 2030, California will need to build 27,000 new apartment homes each year to keep up with demand.

Legal Landscape

Legal Landscape

The statewide Costa-Hawkins Rental Housing Act, enacted in 1995, prohibits the implementation of rent control on any dwelling constructed after 1995. Single-family homes and condominiums also are exempted from rent control laws. In 2018, California voters resoundingly rejected a ballot initiative that would have repealed the Costa-Hawkins Act and expanded rent control.

Despite public opposition to price controls, in 2019, lawmakers adopted a new law imposing statewide rent control

California
BALLOT MEASURE SOUNDLY DEFEATED

Voters in California realized that rent control is an outdated concept that benefits the very few—and not necessarily those in greatest need—and voted against expanding rent control.

REJECT PRICE CONTROLS

Lawmakers should reject price controls and, instead, pursue alternatives such as voucher-based rental assistance for those in greatest need to better address housing affordability.

Alternative Approaches

Many states have adopted programs and initiatives to tackle the affordability crisis. In California, policymakers and the housing industry have made concerted efforts to address the problem. Examples include:

California Senate Bill 35

Passed in 2017, SB 35 requires California cities that do not meet affordable housing goals to approve developments with 10%+ affordable unites, so long as the development complies with existing zoning laws.

California Senate Bill 10

  • SB 10 would allow cities to rezone transit centers and job hubs to allow as many as 10 units per parcel. Proximity to public transit would theoretically lead to fewer cars on the road, bringing the state closer to its goals to reduce climate change.  

Resources

Useful information to help address the housing affordability crisis.

California
Talking Points

Rent Control Talking Points: California

View Resource
California
Report

The Effect Of Rent Control On New Housing Supply: A Bay Area Case Study

View Resource
California
Fact Sheet

California Fact Sheet – Click to download information on the housing crisis in CA

View Resource
California
Academic Resource

The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco

View Resource

Latest News

California
News
CalMatters: “New California Housing Laws Aimed to Streamline Building Process Take Effect in 2024”

CalMatters: “New California Housing Laws Aimed to Streamline Building Process Take Effect in 2024”

Several new laws designed to address California’s severe housing shortage went into effect on January 1. These include a measure to speed up the approval of apartment buildings with some set-asides for lower income renters. Other laws give developers permission to build denser buildings if they set aside additional units for middle-income renters and the &hellip; <a href="https://housingsolutionscoalition.org/states/california/">Continued</a>

02 January 2024
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