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California is experiencing acute and entwined housing and climate crises that are worsening racial and economic inequities. Decades of sprawling and decentralized growth, housing underproduction, and poorly integrated public transportation options have led to rising vehicle miles traveled (VMT), contributing to higher greenhouse gas (GHG) emissions, reduced affordability, poorer air quality, and health outcomes, and yet more development on natural and working lands that limits the state’s ability to sequester carbon naturally.

The housing crisis is severe by any measure – California needs an estimated 2.5-3.5 million additional housing units to meet current demand, with median home prices roughly double the national average and many metro areas exceeding $800,000. Renters typically spend 40-50% or more of their income on housing, well above the 30% affordability threshold, creating geographic disparities where coastal areas have the most acute shortages while more affordable inland areas often lack job opportunities and infrastructure.

SLECC participants explored how we could work together to accelerate our effectiveness in developing, rebuilding and retrofitting homes.  In December 2024, the initial Catalyst Convening webinar – many regions highlighted  the importance of alignment on housing and climate policy

Desired Future

State and local participants envision a future housing market that provides an adequate supply of housing that is accessible and affordable for all and makes the most of vacant or underutilized land in urban areas (infill).

Relevant State Agencies

This priority area is relevant to the function of:

  • California Energy Commission
  • California Public Utilities Commission
  • California Air Resources Board
  • Governor’s Office of Business and Economic Development
  • California Environmental Protection Agency
  • California Department of Transportation (Caltrans)
  • Strategic Growth Council
  • Governor’s Office of Land Use and Climate Innovation.

What’s Working

California has set a goal of planning for 2.5 million new homes by 2030, including no less than one million affordable homes. In recent years, the legislature has passed multiple laws to streamline infill housing development and make it more economically viable, including various development incentives such as streamlined approval processes.

Infill housing development – building on unused or underutilized land within existing urban areas – has emerged as a critical strategy for addressing both crises simultaneously. This approach reduces driving and greenhouse gas emissions by placing homes near jobs, transit, and amenities while creating more vibrant, walkable communities and making efficient use of existing infrastructure. State investments in affordable housing programs have already produced tens of thousands of infill homes in transit- and amenity-rich locations, lowering housing cost burdens, reducing emissions, and creating thousands of construction and maintenance jobs.

California’s investments in affordable housing programs have led to adaptive reuse and infill housing developments resulting in tens of thousands of homes in transit- and amenity-rich locations that have lowered housing cost burdens, reduced greenhouse gas emissions, and created thousands of jobs to create and maintain those homes; 

Under Executive Order N-06-19, the State has made excess state-owned properties available for affordable housing development at low cost, creating a pipeline for the development of thousands of new affordable homes on infill sites. On July 31, 2024, Governor Newsom issued Executive Order (N-2-24) to accelerate and streamline infill development projects to transform undeveloped and underutilized properties statewide into livable and affordable housing for Californians. The order aims to help communities build thriving downtown cores and new housing near transportation hubs and job centers, creating more housing options for Californians while further aligning the state’s housing and climate goals.

Despite these successes, significant barriers persist in scaling infill development, including high costs from land values, materials, labor, fees, complex permitting processes, lengthy development timelines, regulatory requirements, and local opposition. The Strategic Growth Council and other state leaders recognize the need for better state-local coordination to advance housing, climate, and equity goals together, with ongoing efforts like SLECC initiatives working to improve alignment between different levels of government. This integrated approach acknowledges that housing and climate policies must work in tandem rather than as separate challenges, with infill development serving as a key strategy for addressing California’s interconnected crises.

Barriers & Solutions

To achieve the desired future outlined above, California will need to accelerate climate action across CA. Participants share that several key barriers impede progress and require further attention, as detailed below: Housing Regulation, Infrastructure for Housing Access, Financing, Wealth Gap, Climate Resilient Housing and Rebuilding.

Help us strengthen our knowledge base!

Help us to expand our database. Either share new ideas, best practices or general feedback via this form, or click on a particular item to share additional feedback, information, examples of progress on that particular item.

Additional Resources

Please share any additional resources you would like to include by emailing eecoordinator@civicwell.org.