In a victory for the “abundance agenda” (See: https://shulmaven.blogspot.com/2025/04/my-review-of-ezra-kleins-and-derek.html ) over the “enviro-liberals” (See: https://shulmaven.blogspot.com/2016/04/donald-trump-and-enviro-liberals.html ) and their labor union* allies the California Legislature just amended the California Environmental Quality Act (CEQA) to exempt multifamily housing projects in urban areas from the strictures of the law. No longer can narrow special interest groups hold up much need housing by threatening and engaging in litigation.
California is the
midst of the worst housing crisis in the Nation. The median price of a single-family
home is $900,000 and where so-called affordable housing projects come in in
excess of $1,000,000/unit. California used to build housing and from 1960 -2010
the state authorized about 200,000 units/year. In 2024 only 100,000 units were authorized,
and the state is now short about 2,000,000 units.
Although the housing
shortfall has many causes, much of the blame can be placed at the feet of CEQA.
A coterie of neighborhood groups, enviro-liberals, labor unions and law firms
seem to work in unison to stop much needed housing. Until about 1970 house prices
in California were roughly in line with the national average. However, with the
Friends of Mammoth Decision that made CEQA applicable to private projects and
the passage of the California Coastal Act in 1972, house prices took off. As a
result, house prices in the Golden State are nearly two and half times the
national median. It is no wonder that there is an exodus from the state.
The Democratic
Legislature and Governor Gavin Newsom deserve credit for enacting this legislation.
It is way late, but better late than never.
*Labor
unions used CEQA to extort project labor agreement from developers. Indeed
high-rise construction under the Bill requires union labor.
