Let’s start with some basic economics. The conventional wisdom – championed by state legislators and enshrined in policies like SB 35 (which streamlines approval for infill developments) and the potential SB 7 (aimed at reinforcing the Builder’s Remedy), is that California’s housing affordability crisis is primarily a supply problem. The logic seems straightforward: increase housing supply, and prices will fall. It’s Econ 101, right?

Wrong. This simplistic view ignores the complexities of real-world housing markets and the fundamental nature of California’s affordability crisis.

Read More: https://smmirror.com/2024/09/sm-a-r-t-column-part-ii-the-affordability-crisis-unmasking-californias-rhna-process-and-its-role-in-gentrification/