California's Housing Policies Create Slums

California cities are being pressured to slow growth and preserve open space. Yet the state's population continues to grow rapidly. The result will be acute housing shortages that create the nation's largest slums in California.

3 minute read

August 1, 2000, 12:00 AM PDT

By Anthony Downs

Recent press reports indicate many California cities are being pressured by their citizens to slow growth and set aside more land for open space. Californians are unhappy with rising traffic congestion and shortages of parks and recreational areas. So they want to reduce the number of new housing units permitted within their communities.

What they do not realize is that these policies will inexorably create the nation's largest slums in California.

Why? Because the state's continued rapid population growth will increase demands for low-cost housing at the same time that growth-slowing and open-space-reserving policies limit increases in the future supply. The result will be acute housing shortages that raise home prices and rents beyond the abilities of many California households to pay. So thousands of poor households will be forced to double-, triple-, and quadruple up in overcrowded housing units -- that is, slums.

Slow-growth advocates hope local limits on new construction will slash the state's growth altogether, thereby cutting housing demand. But high home prices and rents will not deter poor immigrants from entering California from Latin America. Even living three or four families packed into a "normal" dwelling unit here where jobs are plentiful seems a lot better to them than remaining unemployed in their home countries. So they will keep coming, probably at the current rate of 250,000 persons per year. Moreover, the net out-migration of middle-income households from California to the rest of the U.S. that occurred in the 1990s because of the recession is likely to reverse itself in the current prosperous decade.

California will likely gain six million residents in this decade. That is over an increase of about 200,000 households per year. Yet the state has permitted construction of only 125,000 new housing units per year in the last three prosperous years – and only 103,000 per year during the recession.

The resulting massive increase in overcrowded slum housing is inevitable as long as all decisions about how many units are permitted remain with local governments. Almost every such government's decisions are dominated by homeowners, who want to reduce new construction to keep prices of their own homes high, as well as to limit congestion. No local suburban officials have any incentives to worry about overall housing shortages or poor slum-dwellers.

Yet Californians have shown absolutely no inclination to give more power over housing permits to regional bodies or the state government. So get ready for enormous increases in slums, California!

Anthony Downs is a Senior Fellow at the Brookings Institution in Washington D.C., where he has been since 1977. Brookings is a private, non-profit research organization specializing in public policy studies.

http://www.anthonydowns.com/

The views expressed in this article are solely those of the author, and not necessarily those of the Brookings Institution, its Trustees, or its other staff members.

View More
portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Close-up of white panel at top of school bus with "100% electric" black text.

Driving Equity and Clean Air: California Invests in Greener School Transportation

California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.

April 30 - California Air Resources Board

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

April 30 - Streetsblog USA

"No Thru Traffic - Open Streets Restaurants" sign in New York City during Covid-19 pandemic.

From Throughway to Public Space: Taking Back the American Street

How the Covid-19 pandemic taught us new ways to reclaim city streets from cars.

April 30 - Next City