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California Wildfires Fuel Debate on Housing Shortage and Federal Land Use

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  • Multifamily Focus: California fires fuel debate over housing shortages. Could federal lands unlock solutions to development challenges?

  • Smart Apartments: Property owners and managers are boosting profits by embracing smart technologies like locks, thermostats, and Wi-Fi.

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Multifamily Focus

As the wildfires in Los Angeles rage on, they have already started a conversation about the cost and painful rebuilding process. Governor Gavin Newsom’s recent executive order to waive certain environmental permits aims to expedite rebuilding, but the broader issue of California’s tangled and often delayed permitting system is certain to complicate recovery efforts.

The city has already been struggling to keep up with its housing needs and these newly displaced residents will only make the area’s housing affordability problems worse. Despite a brief surge in multifamily construction following the COVID-19 pandemic, new projects have dwindled to a near halt, with only 500 units in the works for the second half of 2024. This stagnation is due in part to rising interest rates and tax policies like the mansion tax, which have further burdened the state’s already strained housing market.

The federal government has tools to aid rebuilding, but political divides make progress unlikely. Proposals to open federally owned land for housing are gaining traction. While Los Angeles has some federal land, much is reserved for conservation or military use, limiting its feasibility. But, this approach could work better in other Western cities. The devastating fires in Los Angeles and the ongoing affordable housing shortage show just how urgent it is for state and national leaders to come together and tackle this growing crisis.

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