Hard costs like labor and materials combined with ‘soft’ costs such as permitting make building in the San Francisco Bay Area almost three times as costly as in Texas cities.

A new report from the RAND Corporation highlights the differences in the cost of building housing in the Bay Area as compared to Texas.
According to an article by Christian Leonard in the San Francisco Chronicle, just two Texas metropolitan areas, Dallas and Houston, approved more new housing permits in 2024 than the entire state of California, and this largely comes down to the difference in cost. California’s production cost per rentable square foot is 2.3 times higher than Texas’. In the Bay Area, construction costs are three times those in Texas.
A combination of factors, including stricter zoning rules, higher permitting fees, higher labor wages, and earthquake and energy efficiency requirements, all contribute to California’s higher costs. “It takes an average of nearly two years longer to finish a multifamily project in California than it does in Texas, the report found, adding to borrowing and rental costs.”
Among the report’s recommendations to reduce costs in California: requiring cities to approve or deny permits within 30 days to eliminate costly delays; promoting large-scale upzoning and reducing development fees for infrastructure; and adjusting requirements for affordable housing to make them less onerous. However, some experts warn that some costs are necessary and help address issues such as homelessness and climate change that California lawmakers tend to prioritize.
FULL STORY: Here’s how much it costs to build an apartment in the Bay vs Texas

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.

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

Ken Jennings Launches Transit Web Series
The Jeopardy champ wants you to ride public transit.

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.

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.

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.
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