Wealth Gap - California Climate and Energy Collaborative

Barrier 4: Wealth Gap

Barrier Statement

Social inequities including the growing wealth gap underlie and exacerbate housing access and affordability issues.

How communities are experiencing this barrier

View the details on what communities have shared with SLECC from across the state.

Key challenge discussed in - San Francisco Bay Area, Los Angeles

Housing as a commodity rather than shelter. Participants emphasized that market forces and speculative ownership structures have turned housing into an investment vehicle instead of a human right, with capitalism “inserted between people and services.” This commodification limits affordability and contributes to displacement pressures.

Key challenge discussed in - Los Angeles, Inland Deserts

Retrofits of older or inefficient homes—such as energy or seismic upgrades—are essential for meeting climate and safety goals but can unintentionally trigger renter displacement or rent increases if not paired with strong tenant protections and community reinvestment measures. In some areas, landlords have used “climate upgrades” as a pretext for evictions despite rent control protections, highlighting the need to align retrofit programs with anti-displacement policies.

Key challenge discussed in - Los Angeles

Renters overburdened. Example: In Long Beach, 60% of residents are renters, disproportionately BIPOC and low-income. Energy upgrades are often passed on as rent hikes, burdening already gentrifying neighborhoods

Key challenge discussed in - Los Angeles

Family housing shortage: New units often lack 2–3 bedrooms. Parents report difficulty finding livable space for children; family-oriented housing types are scarce

Key challenge discussed in - Inland Deserts

In the Inland Empire, the region’s rapid population and job growth has not been matched by sufficient local housing development, resulting in long commutes and a widening jobs–housing imbalance.

Local Solution Opportunities

SLECC stakeholders have brainstormed the following solution opportunities that can be taken by local leaders. Existing examples of progress or pathways to make further progress are highlighted if known.

Local Solution

Local jurisdictions should adopt and enforce strong anti-displacement protections that prevent residents from being pushed out during upgrades, redevelopment, or rising market pressures. This includes tying entitlement approvals to tenant-protection conditions—such as right-to-return, habitability and construction-phasing plans, rent-increase limits, and monitoring of gentrification and displacement signals—to ensure long-time residents can remain in their homes and communities.

Existing Examples of Progress:

Further Progress Pathways

Region(s): San Francisco Bay Area, Los Angeles

Local Solution

Shift local narratives from “housing-as-commodity” to “housing-as-home” via council resolutions and program framing; align incentives with stability/ownership where feasible.

Existing Examples of Progress:

Further Progress Pathways

Region(s): Los Angeles

Local Solution

Tenant-first retrofit programs (outreach plus direct supports) so owners adopt upgrades without passing costs to renters, prioritizing majority-renter neighborhoods (e.g., Long Beach).

Existing Examples of Progress:

Further Progress Pathways

Region(s): Los Angeles

State Solution Opportunities

SLECC stakeholders have brainstormed the following solution opportunities that can be taken by state leaders. Existing examples of progress or pathways to make further progress are highlighted if known.

State Solution

Pair retrofit and rehabilitation programs with strong tenant protection and anti-displacement requirements. State-supported policy frameworks should ensure that rental retrofit projects include no-displacement provisions, right-to-return guarantees, and rent stabilization or rent-increase limits tied to state-funded upgrades.

Existing Examples of Progress:

The Community Energy Partners / CEC retrofit initiative in the Inland Empire, which includes a local trade ally network and a consumer protection framework, was cited as a promising model for equitable decarbonization

Further Progress Pathways

Region(s): Los Angeles, Inland Deserts

State Solution

Targeted support for family-sized units and pathways to ownership in new supply (readiness, counseling linked to townhome/condo production).

Existing Examples of Progress:

Further Progress Pathways

Region(s): Los Angeles

Local Solution

Disincentivize “housing as commodity” outcomes by aligning state incentives to affordability/ownership/stability rather than speculation.

Existing Examples of Progress:

Further Progress Pathways

Region(s): Los Angeles

Solution Spotlight

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Additional Resources

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