RAND's comprehensive study reveals stark disparities in housing construction costs among states, indicating that California's efforts to boost housing production are hampered by convoluted state and local regulations. The study highlights that building costs for low-income housing are disproportionately higher in California. Concurrently, legislative attempts to ease the regulatory burden on housing development, such as the proposed SB 607, faced fierce resistance from environmental and labor groups, leading to its substantial revision, thus reflecting ongoing conflicts over the balance between development and environmental concerns.
California's multifamily housing production costs are vastly higher than in Texas or Colorado, largely due to state and local policies resulting in prolonged timelines and fees.
The recent gutting of Senate Bill 607 demonstrates the powerful influence of environmental and labor groups in shaping housing development policies in California.
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