California
'Limited to no impact': Why a pro-housing group says California’s pro-housing laws aren’t producing more
In summary
A passel of recent California laws were supposed to supercharge the construction of desperately needed housing. According to YIMBY Law, they haven’t even come close.
One California law was supposed to flip defunct strip malls across California into apartment-lined corridors.
Another was designed to turn under-used church parking lots into fonts of new affordable housing.
A third would, according to supporters and opponents alike, “end single-family zoning as we know it.”
Fast-forward to 2025 and this spate of recent California laws, and others like it intended to supercharge the construction of desperately needed housing, have had “limited to no impact on the state’s housing supply.”
That damning conclusion comes from a surprising source: A new report by YIMBY Law, a pro-development nonprofit that would very much like to see these laws work.
The analysis, released today, studied five state laws passed since 2021 that have swept away regulatory barriers to building apartment buildings and other dense residential developments in places where such housing has been historically barred.
The laws under review include:
- SB 9 from 2021, which allows people to split their single-family homes into duplexes, thus ending single-family-home-only zoning across California. In practice, according to the report, building permits for only 140 units were issued under the law in 2023.
- AB 2011 from 2022 was designed to make it easier for developers to convert office parks, strip malls and parking lots into apartment buildings. In 2023, developers on just two projects were given local regulatory approval to start work under the law. In 2024, the total was eight. The report found no projects that have made use of SB 6, a similar bill passed that same year but with stricter labor requirements.
- SB 4 from 2024, the so-called Yes In God’s Backyard law, which lets churches, other houses of worship and some schools to repurpose their land for affordable housing. The report found no takers on that bill too.
“It’s grim,” said Sonja Trauss, executive director of YIMBY Law. Though she acknowledged some of the laws are still new, she blamed their early ineffectiveness on the legislative process which saddled these bills with unworkable requirements and glaring loopholes.
“Everybody wants a piece,” she said. “The pieces taken out during the process wind up derailing the initial concept.”
What are these requirements and loopholes that have prevented these laws from succeeding? Maybe not surprisingly, they are the frequent objects of critique by YIMBY Law and the Yes In My Backyard movement more generally.
One is the inclusion of requirements that developers only hire union-affiliated workers or pay their workers higher wages.
Another are affordability mandates which force developers to sell or rent the units they build at below-market prices.
A third is the strenuous opposition by local governments and the failure of these state laws to override it. In the two years following the passage of SB 9, for example, YIMBY Law tracked 140 local ordinances that, in the view of the report, were “designed to reduce or prevent” the bill from working on the ground. They included tight limits on the size of buildings, affordability requirements, or restrictions on which types of owners can make use of the law.
“The ADU boom stands alone. No other form of housing production took off in California during this period.”Law paper by UC Davis professor Chris Elmendorf and UC Santa Barbara professor Clayton Nall
Last year, the state Legislature passed a “clean up” bill meant to void some of these local add-ons.
There are plenty of other possible impediments to construction in California, which may explain why these bills have seen such tepid uptake. Sky high interest rates, chronic shortages of construction workers and high material costs (all of which could be exacerbated by current or expected changes to federal tariff, immigration and fiscal policy) all work to make residential housing development a less appealing financial proposition. Insufficient public funds and expected cuts to federal housing programs may weigh down on the affordable housing sector too.
But the report is not the first to point to the preconditions and omissions included in so many of the state’s legislative efforts to goose housing development as the reason for their lack of impact.
In a recent law paper, UC Davis law professor Chris Elmendorf and UC Santa Barbara political scientist Clayton Nall wrote that the relative success of California’s efforts to boost the construction of accessory dwelling units is the exception that proves the rule. Over the last decade, a cavalcade of state laws have stripped local governments of their ability to subject backyard cottage projects with environmental review mandates, significant fees, affordability mandates, union-hire rules, confining size or aesthetic limitations or added parking requirements.
“The ADU boom stands alone. No other form of housing production took off in California during this period,” the authors wrote. A likely reason why, they argue, is that ADU projects don’t come with nearly as many strings attached as other forms of dense development permitted by various California laws.
In 2023, the state permitted more than 28,000 ADUs, according to state data.
The history of ADU legislation in California is instructive, said Trauss. “It took about like five years of revisions before they were really getting going.”
The YIMBY Law report is based on self-reported permitting data submitted by cities and counties to the California Housing and Community Development department. The nonprofit complemented that messy database with its own internal collection harvested from its own litigation and activism. That means the data on what is actually getting built — and therefore how effective any of these laws really are — is imperfect.
That fact isn’t lost on many legislators.
The Assembly housing committee’s first hearing of the year was dedicated not to new legislation, but to evaluating the state’s existing “pro-production” laws.
“We shouldn’t just keep passing more and more bills just because we can,” Chair Matt Haney, a San Francisco Democrat, said. “We should actually look at what is working, why it’s working, how we can do more of what’s working and if it’s not working, we should do more to fix it or change it.”
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California governor race heats up with uncertainty and potential surprises
BAKERSFIELD, Calif. (KBAK/KBFX) As the race for California’s next governor intensifies, uncertainty looms with the primary election just six months away.
A recent Emerson College poll shows Republican Chad Bianco leading by a narrow margin of one point, while 31% of voters remain undecided.
“The field remains wide open,” said Tal Eslick, owner of Vista Consulting. “There’s a half dozen credible Democrats in the race. There’s really a couple – two – namely Republicans.”
Eslick noted that Bianco’s lead is more reflective of the crowded Democratic field than a shift toward Republicans statewide.
California governor race heats up with uncertainty and potential surprises (Photo: AdobeStock)
He suggested a “black horse candidate” could still emerge, possibly from Hollywood or outside politics.
With rising energy and gas prices, affordability is expected to be a key issue for voters.
California governor race heats up with uncertainty and potential surprises (AP Photo/Juliana Yamada, File)
“I think that you could also see voters vote with their pockets,” Eslick said, highlighting the potential for a non-traditional candidate to gain traction.
California
California threatens Tesla with 30-day suspension of sales license for deceptive self-driving claims
SAN FRANCISCO — California regulators are threatening to suspend Tesla’s license to sell its electric cars in the state early next year unless the automaker tones down its marketing tactics for its self-driving features after a judge concluded the Elon Musk-led company has been misleading consumers about the technology’s capabilities.
The potential 30-day blackout of Tesla’s California sales is the primary punishment being recommended to the state’s Department of Motor Vehicles in a decision released late Tuesday. The ruling by Administrative Law Judge Juliet Cox determined that Tesla had for years engaged in deceptive marketing practices by using the terms “Autopilot” and “Full Self-Driving” to promote the autonomous technology available in many of its cars.
After presiding over five days of hearings held in Oakland, California in July, Cox also recommended suspending Tesla’s license to manufacture cars at its plant in Fremont, California. But California regulators aren’t going to impose that part of the judge’s proposed penalty.
Tesla will have a 90-day window to make changes that more clearly convey the limits of its self-driving technology to avoid having its California sales license suspended. After California regulators filed its action against Tesla in 2023, the Austin, Texas, company already made one significant change by putting in wording that made it clear its Full Self-Driving package still required supervision by a human driver while it’s deployed.
“Tesla can take simple steps to pause this decision and permanently resolve this issue — steps autonomous vehicle companies and other automakers have been able to achieve,” said Steve Gordon, the director of the California Department of Motor Vehicles.
Tesla didn’t immediately respond to a request for comment Wednesday.
The automaker has already been plagued by a global downturn in demand that began during a backlash to Musk’s high-profile role overseeing cuts in the U.S. government budget overseeing the Department of Government that President Donald Trump created in his administration. Increased competition and an older lineup of vehicles also weighed on Tesla sales, although the company did revamp its Model Y, the world’s bestselling vehicle, and unveil less-expensive versions of the Model Y and Model X.
Although Musk left Washington after a falling out with Trump, the fallout has continued to weigh on Tesla’s auto sales, which had decreased by 9% from 2024 through the first nine months of this year.
Despite the slump and the threatened sales suspension in California, Tesla’s stock price touched an all-time high $495.28 during Wednesday’s early trading before backtracking later to fall below $470. Despite that reversal, Tesla’s shares are still worth slightly more than they were before Musk’s ill-fated stint in the Trump administration — a “somewhat successful” assignment he recently said he wouldn’t take on again.
The performance of Tesla’s stock against the backdrop of eroding auto sales reflects the increasing emphasis that investors are placing on Musk’s efforts to develop artificial intelligence technology to implant into humanoid robots and a fleet of self-driving Teslas that will operate as robotaxis across the U.S.
Musk has been promising Tesla’s self-driving technology would fulfill his robotaxi vision for years without delivering on the promise, but the company finally began testing the concept in Austin earlier this year, albeit with a human supervisor in the car to take over if something went awry. Just a few days ago, Musk disclosed Tesla had started tests of its robotaxis without a safety monitor in the vehicle.
California regulators are far from the first critic to accuse Tesla of exaggerating the capabilities of its self-driving technology in a potentially dangerous manner. The company has steadfastly insisted that information contained in its vehicle’s owner’s manual on its website have made it clear that its self-driving technology still requires human supervision, even while releasing a 2020 video depicting one of its cars purportedly driving on its own. The video, cited as evidence against Tesla in the decision recommending a suspension of the company’s California sales license, remained on its website for nearly four years.
Tesla has been targeted in a variety of lawsuits alleging its mischaracterizations about self-driving technology have lulled humans into a false of security that have resulted in lethal accidents. The company has settled or prevailed in several cases, but earlier this year a Miami jury held Tesla partly responsible for a lethal crash in Florida that occurred while Autopilot was deployed and ordered the automaker to pay more than $240 million in damages.
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