![]() In recent years, some CEQA lawsuits tried to block infill housing (i.e., new housing on vacant, underused lots in an older neighborhood) and housing projects near transit lines. Each additional growth control policy a community added was associated with a 3-5 percent increase in home prices (Taylor 2015 Rothwell 2019).Īnother factor is the high costs and uncertainties in housing development related to lengthy entitlement processes, which include zoning changes, permit applications, standards variances, site plan reviews, design reviews, and environmental impact reviews (EIR) required by the California Environmental Quality Act (CEQA).įor projects that required an EIR, the average timelines for approvals were 43 months in Los Angeles and 77 months in Santa Monica (O’Neill, Gualco-Nelson, and Biber 2018). One key factor exacerbating the housing supply shortage is the single-family zoning and local opposition to housing, often embodied by the “not in my backyard,” or NIMBY, sentiment. Figure 2: Median Rent for a Two-Bedroom Apartment, California, 2022 ![]() High housing costs and a low stock of affordable housing create a precarious situation, especially for lower-income families and individuals who are at higher risk of becoming homeless. In more than two-thirds of California’s ZIP codes, families are "rent-burdened" as they spend more than 30 percent of their income on rent (ABC 2021). The median rent for a two-bedroom apartment is well over $3,000 in the Bay Area, more than twice as much as the national average of $1,200. As of March 31, 2021, the typical home value in California was $775,000, double the levels in New York and Florida and triple the level in Texas ( Zillow). Between 20, home values more than tripled in most metro areas in the Golden State. Housing affordability and availabilityĬalifornia has one of the most expensive and fastest-growing housing markets. With so much money being spent to combat homelessness, what are the prospects for reducing the numbers once and for all? This policy brief provides an overview of the major contributing factors to the rising homelessness in California and highlights the impact of policies, legislation, and regulations on several of those factors: housing, mental health, illicit drug use, and crime. Governor Gavin Newsom signed a $12 billion funding package of bills in 2021 to tackle the homelessness crisis. ![]() Between 20, California spent $13 billion on homelessness, across nine state agencies through 41 programs (Har 2021). Meanwhile, state and local governments have spent billions of dollars to combat homelessness. Moreover, a higher percentage of so-called chronically homeless 1 have drug addiction, a severe mental illness, or both. In 2020, about 25 percent of all homeless adults in Los Angeles County had severe mental illnesses such as a psychotic disorder and schizophrenia and 27 percent had a long-term substance use disorder. Disputes center around whether to focus on building permanent housing versus shelters and interim housing and the legality of public encampments.Īnother challenge lies in the interactions between mental illness, drug addiction, and homelessness. Opinions diverge on how to reduce the unsheltered homeless population. ![]() That’s a stark contrast with New York, where only 5 percent of the homeless population are unsheltered. ![]() Stanford King Center on Global DevelopmentĪbout 70 percent of California’s homeless live outside a shelter system, sleeping in tents, public open spaces, or vehicles.Stanford Environmental and Energy Policy Analysis Center (SEEPAC).Stanford Center on China's Economy and Institutions (SCCEI).California Policy Research Initiative (CAPRI). ![]()
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