- Wildfires in Altadena and Pacific Palisades intensified California’s housing crisis, raising the stakes for rebuilding efforts.
- The state loosened zoning laws to allow more housing, but resistance remains strong in affluent communities, particularly to multifamily development.
- Residents in fire-affected areas, like Altadena, also resist higher housing density, fearing displacement and rapid neighborhood changes.
- The CA housing shortage is seen as a major driver of statewide stagnation. High housing costs continue to push out residents and add to the state’s economic challenges.
California is at a pivotal moment in addressing its housing crisis, which was worsened by recent wildfires that ravaged parts of Los Angeles, including Altadena and Pacific Palisades.
The state’s ability to rebuild these disaster-struck neighborhoods could well be a litmus test for the state’s future economic trajectory, according to WSJ.
By The Numbers
The January wildfires destroyed more than 16.6K buildings, many of which were single-family homes.
As California grapples with the lingering devastation, the state faces a critical choice: Will it embrace denser development to tackle its housing shortage or continue to preserve low-density, single-family neighborhoods?
While the fires showed the urgent need for more housing, opposition to greater density is also growing, particularly in historically affluent neighborhoods like Altadena, where residents fear new developments could change the character of their neighborhoods.
Rising Tensions
For many housing advocates, the wildfires made it clear that more housing is desperately needed in California, particularly in areas once dominated by single-family homes.
Azeen Khanmalek, executive director of the pro-development group Abundant Housing LA, believes the fires shifted the conversation to the need for greater density. Khanmalek and others are urging LA to allow more apartments in traditionally single-family zones.
However, residents in fire-stricken neighborhoods are deeply concerned about the potential for significant changes. In Altadena, the destruction sparked fears of gentrification and displacement, particularly with rumors of real estate developers looking to buy up burned properties.
Victoria Knapp, the chair of Altadena’s town council, expressed her concern about having multifamily housing next to her home, reflecting broader unease about transforming suburban areas into denser developments.
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Growing Housing Shortage
California’s housing shortage has become a major impediment to the state’s economic growth. As residents keep leaving for more affordable areas like Texas and Florida, the state faces rising unemployment, lower economic gains, and a growing homelessness crisis.
Scott Wiener, a state senator from San Francisco, has been outspoken in highlighting how the housing shortage is “strangling” California’s economic future. Without more housing development, the state risks further statewide stagnation.
Indeed, California has seen a steady decline in new housing construction, with housing prices more than double the national average. High rents and the mismatch between supply and demand are driving people out and making it hard for businesses to hire workers who can afford to live nearby.
Politics of Housing
For years, zoning laws in CA favored single-family homes, with 96% of residential land zoned for such use last year. In LA, 74% of residential land is dedicated to single-family homes, reflecting the state’s historical commitment to preserving these types of neighborhoods.
In recent years, however, the state has attempted to loosen restrictions to allow for more apartment buildings and multifamily units. This includes legislation facilitating duplexes and accessory dwelling units (ADUs) on single-family lots.
Despite these changes, local resistance remains strong. In Altadena, for example, a proposed zoning plan to allow for more apartments along commercial streets faced significant opposition from residents, with more than 600 people signing a petition against the changes.
The fears of developers purchasing up properties and turning neighborhoods into dense apartment complexes are at the forefront of community concerns.
The Bigger Picture
The wildfires in Altadena and Pacific Palisades may serve as a test case for how California approaches housing density in the future.
As the state rebuilds, it must decide whether to double down on its commitment to single-family zoning or embrace more sustainable, denser developments that could alleviate its housing crisis.
The economic pressures are clear, but the political and community challenges remain. How California addresses these issues will have lasting implications for its economy, residents, and future growth.
