California
Blame slow-growth policies for California’s housing and homeless crises
The roots of California’s housing problems aren’t hard to trace given the reams of house-price and population data going back decades. The Los Angeles Times reported the median price of a California home in 1970 was only 5 percent higher than the national average at $24,300. That year’s nationwide median price was $23,400, which translates to a low $181,000 in 2023 after adjusting for inflation.
So what happened? It’s basic supply and demand. Government policies since the 1970s artificially constrained housing supply through slow-growth rules, urban-growth boundaries, an increase in developer fees, environmental laws (such as the California Environmental Quality Act) and regulatory edicts including inclusionary zoning – i.e., requiring builders to set aside a percentage of under-market units. As population grew, these restrictions constrained the ability of builders to keep up with demand.
California’s nonpartisan Legislative Analyst’s Office points to 1970 as a pivotal year, noting that housing in the following decade soared from somewhat above the national average to 80 percent above it. Something changed in that period. The LAO’s 2015 report concluded that California was underbuilding housing by about 110,000 units a year, especially along the coast – a supply problem that has only worsened.
We often hear from coastal residents who, in arguing against new housing projects, note that not everyone has a right to live in an idyllic beachside community. Sure, one would always expect cities such as Santa Barbara, Santa Cruz and Laguna Beach – with their perfect climate and magnificent views – to have higher prices than grittier inland communities.
But what these critics – virtually all of whom already own their houses – don’t say is slow-growth policies lead to prices that are much higher than they ought to be. Or that such decisions have a cascading effect, as people flee from unaffordable areas and drive up demand elsewhere until, well, prices are soaring in places like Bakersfield and Reno.
A builder-commissioned study from 2015 explains that as much as 40 percent of the price of a new single-family house in San Diego County is attributable to government fees and regulations – an issue the state hasn’t addressed in the ensuing years. Some of those costs are the direct result of fees, but much of the problem is regulatory. By reducing the amount of developable land, regulators increase the price of buildable tracts. No one has a right to live near San Diego’s coast – but let’s not pretend people are being priced out purely by market forces.
Unaffordable housing exacerbates a related high-profile problem – rampant homelessness. Homelessness is not entirely caused by housing unaffordability. It’s a multi-pronged problem driven to a large degree by addiction and mental-health issues. But regions with higher-cost housing have much higher levels of homelessness because a lack of cheaper housing leaves people on the economic margins with nowhere to go. Homelessness is a social problem that’s compounded – often dramatically so – by exorbitant housing prices.
Loosening housing-construction rules will open opportunities at the lower rungs of the housing ladder. Easing slow-growth restrictions will also make it easier for nonprofits to build temporary and transitional housing that benefit the homeless.
The state also must stop squandering resources on homelessness programs that don’t work, such as Housing First policies that incentivize construction of units that cost $800,000 or more, and start earmarking scarce public dollars toward projects that truly help our poorest neighbors. But the starting point for addressing both crises – housing unaffordability and homelessness – is reducing regulations for all housing construction.
Steven Greenhut and Wayne Winegarden are senior fellows at the Pacific Research Institute. This column is excerpted from their new book, “Giving Housing Supply a Boost.”
California
‘Sneaker wave’ sucks California fisherman out to sea
A fisherman was pulled from the ocean and rushed to a hospital in critical condition after a powerful “sneaker wave” swept him off the shoreline at Baker Beach in San Francisco.
The dramatic May 29 rescue unfolded around 1 p.m. in the Presidio, where emergency crews responded to reports of a person sucked out to sea.
According to the San Francisco Fire Department, witnesses said the fisherman was standing along the shoreline when a sneaker wave suddenly surged ashore, knocking him to the ground and into the ocean, leaving him incapacitated.
Bystanders quickly called 911, helping launch a large-scale rescue effort that included San Francisco firefighters, an SFPD police boat, drone units and a helicopter.
Within minutes of being dispatched, three rescue swimmers from SFFD entered the water and reached the victim, officials said in a post on X. The crew conducted an open-water rescue and brought the fisherman safely back to shore.
Paramedic rescue swimmers and additional emergency medical personnel immediately began advanced life support measures and rushed the victim to a nearby hospital in critical condition, fire officials said.
Officials said the harrowing ordeal serves as a reminder of the dangers posed by sneaker waves, which can strike with little or no warning.
Unlike typical waves, sneaker waves can surge much farther up the beach than expected, even on days when ocean conditions appear calm. The powerful waves can easily knock people off their feet and drag them into the water before they have time to react.
Fire officials urged beachgoers to stay off wet sand and rocks, keep a constant watch on the ocean and never turn their backs to the water. Anyone who sees a person swept into the surf is asked not to enter the water, but instead to call 911 immediately and throw the victim a flotation device if one is available.
“Early calls to 911 save lives,” fire officials said.
California
California reports one of largest drops in homelessness in past year, Hud reports
California reported one of the largest decreases in homelessness over the past year, according to a new report from the US Department of Housing and Urban Development (Hud).
The Golden state recorded a total unhoused population of 181,934 in 2025 – an almost 3% decrease since the year prior, placing it among the five states with the largest decreases from 2024. However, more significant drops were recorded in Illinois (44%), Hawaii (41%), Florida (11%) and New York (8%).
The new data signals at least some success on the part of Gavin Newsom, the California governor who has intensified his crackdown on homelessness over the past year. In May 2025 he announced a new model ordinance for cities and counties to address “persistent” homeless encampments, as well as $3.3bn in voter-approved funding to increase housing and drug treatment programs.
California, along with New York, had the largest population of unsheltered people recorded in 2025. Homelessness has been a key issue in this year’s gubernatorial race, as well as in the Los Angeles mayoral race.
The data also showed that the national homeless population decreased for the first time since 2016, coming down 3% from 2024. The Trump administration attempted to downplay the small one-year decrease, instead highlighting the fact that homelessness has increased 27% since 2013.
“The data is clear that the status quo of ‘housing first’ has failed to meaningfully reduce homelessness, resulting in crisis levels of people living on the streets,” Scott Turner, the Hud secretary, said in a press release. “HUD is restoring its programs to advance recovery and self-sufficiency and to ensure that taxpayer-funded benefits serve American families.”
As the administration attempted to downplay the drop in homelessness, it also sought to connect the success to its immigration policies, stating that the 2025 decrease was “attributable to decreases in Sanctuary Cities”.
The data comes from the federally mandated homeless point-in-time count, which tallies people sleeping in shelters and outside on a given day. On a single night in January 2025, there were 745,652 homeless persons in the United States.
While anti-homelessness advocates cited the decrease in homelessness as a “relief”, they also pointed out that the Trump administration’s policies may erode the progress that has been made.
“So much of the progress reflected in the 2025 PIT Count is due to targeted housing and service resources that were available in 2024 to rehouse people, including the highly successful Emergency Housing Voucher program, and new funds to address rural and unsheltered homelessness,” Ann Oliva, the CEO of the National Alliance to End Homelessness, said in a statement.
“Unfortunately, the Trump Administration has largely deprioritized these tools and worked to dismantle the very systems that drove these reductions.” Oliva pointed to the administration’s proposed cuts to permanent housing programs, which the organization found would “force at least 170,000 formerly homeless people back on the streets”.
The government has also mandated treatment for recipients of federal housing vouchers, and penalized jurisdictions that employed harm-reduction strategies such as safe consumption sites. In April 2026, Hud introduced a proposed rule that would require federally funded shelters to house prospective tenants based on their birth sex alone.
California
I moved from Germany to the US for my career. The high cost of living in California shocked me, but it’s worth it to live here.
This as-told-to essay is based on a conversation with Christiane Schroeter, a 49-year-old professor of innovation and entrepreneurship and leadership strategist in San Luis Obispo, California. The following has been edited for length and clarity.
I moved from Limburg, Germany, to the US in 1999 as an exchange student for my M.S. degree before returning to Germany to complete additional graduate work. I returned to the US in 2001 as a Fulbright Scholar to pursue my Ph.D. at Purdue University.
After I earned my Ph.D. in 2005, I decided to build my career and my life in the US rather than return to Germany. I had met my husband during my graduate school years, and together we chose to put down roots on the West Coast.
I joined the faculty at Cal Poly in September 2007 and gave birth to my daughter in December of that year. I started a new job, pregnant, while moving across the country. Building a career and a family at the same time, far from my home country, shaped everything I came to understand about the real cost of relocating.
Today, I’m a leadership strategist, professor of innovation and entrepreneurship at Cal Poly, San Luis Obispo, author of several books about leadership, and a podcaster.
The new country feels last longer than you expect
I was 23 years old when I first moved to the US. I expected the obvious expenses, such as flights, paperwork, and the starter purchases you don’t think about until you need them.
What surprised me was how long the newness stayed expensive. Even when your income is objectively higher, fixed costs rise so quickly that it takes very little to feel financially stretched.
I spent hours learning basics I had taken for granted in Germany, like opening bank accounts, building credit from zero, and figuring out what to do when you’re asked for a Social Security number before you have one.
I also had to learn how rental contracts, deposits, phone plans, and transportation work in places where you need a car, including registration, insurance, and DMV requirements. Time becomes money fast when you’re studying, working, and trying to build a future at the same time.
In Germany, I knew how life worked. In the US, I had to rebuild that knowledge piece by piece.
Housing in California made me realize how quickly additional money gets absorbed
Many people underestimate how dramatically living in California can affect their budget.
For me, one of the highest unexpected monthly costs was the mortgage. Housing was not slightly more expensive. It became the financial anchor that shaped everything else. My husband and I had to make monthly decisions around that number.
Living in California was a genuine upgrade with bigger houses and bigger yards. California’s abundance of fresh produce, gorgeous weather, and proximity to the ocean fit my lifestyle better than Germany ever did. The cold, rainy days and a culture I never fully connected with were not the life I wanted.
I would honestly say I live in a “Goldilocks place.”
The cost of childcare changed how I thought about security
The hardest trade-off was realizing how expensive support can be when you live far from friends and family. After I delivered my first child, I faced the childcare scramble almost immediately. I remember touring childcare centers and wondering how families afford monthly costs for multiple children. I spoke with mothers who realized that their earnings would nearly match what they were paying for childcare.
At the same time, I was adjusting physically and emotionally to becoming a mother, and when you’re far from family, there’s no built-in safety net for the unpredictable moment, such as a sick day, a last-minute meeting, or an emergency.
I learned that many US families create a fragile patchwork of childcare and babysitting. If you have children, distance from family is not only emotional but also logistical. It can become one of your highest monthly costs, and one of your biggest mental loads.
On a lesser note, one bill shocked me: our cellphone bill. Our family plan with four phones, two watches, and two iPads is about $300. That may sound routine, but over a year, it feels like a luxury purchase hiding in plain sight.
Healthcare and benefits reshaped my definition of stability
Healthcare in the US introduced another layer of financial awareness. Even with insurance, you still have to pay premiums, deductibles, co-pays, navigate provider networks, and prepare for potential surprise costs.
I remember debating whether to schedule a specialist appointment because I wasn’t sure how much it would count toward our deductible. In Germany, that decision would have been straightforward. In the US, it required reviewing the provider network, estimating out-of-pocket costs, and preparing for an unexpected bill.
The upside is real, but so is the pressure
I built the life for which I came here. I built a stable academic career. I built a business. California became home.
In Germany, Sundays were true rest days. Life paused by design. In California, Sundays easily became catch-up days. I realized I had to intentionally create what I now call “Serenity Sunday.” It is my way of honoring the German philosophy of working to live while living in an American culture that often feels like living to work.
I don’t think I’d move back to Germany now. When I visit, I enjoy it more like a tourist looking in than a native who feels at home. For me, the cost of living in California is worth it, because what I’ve gained is hard to put on a spreadsheet: independence, a career I couldn’t have built anywhere else, and a family rooted in a place I chose.
The price is real, but so is the payoff.
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