I cited several of the problems with construction in California in a post previously, allow me to copy and paste them here:
1. The Core Trap: Subsidizing Demand Instead of Increasing Supply
The "Ladder and Elevator" Analogy: Klein points out that traditional progressive housing policy focuses heavily on subsidizing demand—offering housing vouchers, tax credits, or down-payment assistance.
The Backfire: In a market with a severe housing deficit, pumping more money into the demand side without building new supply simply pushes prices higher. He equates this to building a ladder to reach an elevator that is rising just as fast.
2. "Lawn-Sign Liberalism" and Procedural Bottlenecks
The Progressive Contradiction: Klein critiques "lawn-sign liberalism," where progressive communities champion equity and inclusivity symbolically but operationally block multi-family housing in their own neighborhoods.
Vetoocracy: One generation's solutions have become the next generation's problems. Laws designed in the 1970s to give citizens a voice have created a "vetoocracy," where anyone can weaponize public comment periods, historical designations, and local boards to delay or kill dense housing developments
3. The Weaponization of CEQA
Indiscriminate Delays: A major target in the book is the California Environmental Quality Act (CEQA). Originally built to protect nature from industrial pollution, it is now routinely used by NIMBY neighbors and competing labor unions to block transit-oriented, high-density housing.
Perverse Environmental Outcomes: By blocking dense urban housing under the guise of environmentalism, CEQA forces developers to build farther out into the exurbs, creating more traffic, emissions, and suburban sprawl.
4. Compounding Rules Drive Up Insane Costs
Feeding the Beast: Klein highlights how building a single unit of affordable housing in cities like San Francisco can take upwards of six years and cost over $700,000 to $1 million.
Regulatory Overload: These astronomical costs are driven by a mountain of mandates, localized construction requirements, and bureaucratic hoops. The process has become so rule-bound that public funds meant to build shelter are mostly consumed by the administrative costs of complying with regulations.
Do you believe Texas has these same sorts of problems at the level of California?
I'll make this an open book test for you:
California faces a severe housing shortage, with seven of America’s ten most expensive metros. While building more housing is critical to address this shortage, building costs in California far exceed those in other western states. In “The High Cost of…
cayimby.org
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Affordable Housing Premium: California’s affordable housing costs 1.5 times more than its market-rate housing and 4.1 times more than Texas market-rate housing. Fees and wage requirements play a role. Architectural and engineering fees for affordable housing in Los Angeles average $23,249 per unit—twice the market-rate cost and nearly eight times Texas levels. These costs stem from overly prescriptive design standards that go far beyond legitimate safety requirements (cost-of-living differences explain only 10% of this variation). Additionally, prevailing wage requirements on affordable housing can explain 32-56% of hard cost differences between California and Texas. If California had Colorado’s production costs for publicly subsidized affordable housing, the recent $1.25 billion in state funding would have produced more than four times as many affordable homes.
Timeline Penalties: California’s development process is extremely slow, with predevelopment alone taking 27.9 months versus 13.1 months in Texas and 20.9 months in Colorado. CEQA litigation and long waits for sequential inspections contribute to these costly delays. These delays cost money: developers have to make interest payments on their debt, pay property taxes, and cover increasing construction costs while they wait for approvals. California’s extended development timelines directly increase total development costs by about 8%, or $1,284 per unit, per month of delay.
Fee Burden: Municipal impact fees in California average $29,000 per unit compared to under $1,000 in Texas. San Diego developers pay $37,000 per unit—45 times Texas levels. These fees function as exclusionary zoning by other means, pricing out affordable housing and protecting wealthy neighborhoods from development (For more on this, see our report on
The Impact of Fees)."