A Call for Prevailing Wages as a Housing Solution

An op-ed written by city officials from two South Bay Area cities argues that reform of land use regulations won't be enough to solve California's housing crisis.

2 minute read

May 19, 2017, 8:00 AM PDT

By James Brasuell @CasualBrasuell


Construction

potowizard / Shutterstock

Margaret Abe-Koga, Mountain View City Council member, and Rick Bonilla, deputy mayor of the city of San Mateo, write an op-ed for The Mercury News tackling the thorny issue of affordability in California's large coastal cities.

The duo's argument gives consideration to the construction industry, instead of the more typical punching bag of such polemics—land use regulations.

The driving forces behind our housing crisis are not just a shortage of supply, but also a persistent wage stagnation that has priced entire segments of our workforce out of the market.  A policy solution must speak to both issues.

Enter the construction industry. Blue collar construction workers have seen a 25 percent decline in their inflation adjusted wages since 1990, according to data from a recent report by Smart Cities Prevail. Meanwhile, white collar employees of the same companies are reaping the benefits of soaring housing costs. "Developer fees and builder earnings now constitute a greater share (18 percent) of total project costs than construction wages and benefits (15 percent). Profits have grown 50 percent faster than either materials or labor," according to the article's recounting of the findings of the report.

Abe-Koga and Bonilla cite the report's findings to make the case for state legislation that would require prevailing wages for construction crafts. Streamlining local regulations, as some state legislators are currently suggesting, wouldn't be enough to bridge the gap between low wages and the high cost of living in the state.

Tuesday, May 16, 2017 in The Mercury News

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

Use Code 25for25 at checkout for 25% off an annual plan!

Interior of Place Versailles mall in Montreal, Canada.

Montreal Mall to Become 6,000 Housing Units

Place Versailles will be transformed into a mixed-use complex over the next 25 years.

May 22, 2025 - CBC

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.

June 4, 2025 - Diana Ionescu

White and yellow DART light rail train in Dallas, Texas with brick building in background.

DARTSpace Platform Streamlines Dallas TOD Application Process

The Dallas transit agency hopes a shorter permitting timeline will boost transit-oriented development around rail stations.

May 28, 2025 - Mass Transit

Line of multi-colored big rig trucks drivign down highway with other traffic including a yellow school bus.

Study: 4% of Truckers Lack a Valid Commercial License

Over 56% of inspected trucks had other violations.

June 4 - FreightWaves

Pedestrian holding visual impairment cane pressing crosswalk button.

Chicago Judge Orders Thousands of Accessible Ped Signals

Only 3% of the city's crossing signals are currently accessible to blind pedestrians.

June 4 - DRA Legal

People on bike wearing helmets stopped at intersection waiting for passing cars in Philadelphia, Pennsylvania.

Philadelphia Swaps Car Lanes for Bikeways in Unanimous Vote

The project will transform one of the handful of streets responsible for 80% of the city’s major crashes.

June 4 - Philly Voice

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.