New Report: Climate Policies Worsening California's Housing Crisis, by Holland & Knight Partner Jennifer Hernandez

California's housing crisis has been exacerbated by the state's ambitious climate policies, which have inadvertently made housing less affordable and accessible for many residents, according to a new report.

Hernandez writes, "Scores of new laws and regulations are now ritually adopted in California each year in a quixotic effort to conjure millions of desperately needed homes in exactly the areas of the state where housing costs are highest, anti-housing lawsuits are the most likely, and the units being produced are rentals that are unaffordable to the vast “missing middle” of low-, median-, and moderate-income households and render homeownership entirely unattainable.”

She claims that other climate policies further increase housing costs and discourage construction, including massive VMT “mitigation” obligations which burden new housing with outsize obligations to subsidize public transit and bike lanes somewhere (for someone), and to contribute even more funding to income-restricted, lottery-dispersed taxpayer-funded apartments that can cost more than $1 million per apartment to build. Residents of new housing also get burdened by California Air Resources Board (CARB) policy to “decarbonize” new housing by banning lower-cost natural gas appliances, therefore forcing new residents to assume already-extraordinarily high (and growing) electricity costs."

​ In "Bad Climate for Housing," Jennifer L. Hernandez explores the unintended consequences of California's climate strategies on housing affordability, highlighting the sharp divide between coastal and inland housing markets, the increasing costs driven by climate policies, and the critical shortage of housing permits for median and lower-income households.

​This article delves into the complex interplay between environmental regulations and housing development, offering a comprehensive analysis of how well-intentioned climate actions have led to a rolling disaster in the state's housing sector. NBLC’s mission is to support sound public policy. Advocating the need for more housing while supporting responsible climate action in the North Bay remains a priority.

Read the full report here.

Previous
Previous

Latest CEQA Reform Effort a ‘Major Needle-Mover,’ Some Housing Advocates Say

Next
Next

POLICY WATCH – March 2025