Why California governor candidates say housing is too hard to build
Noe PadillaCalifornia’s leading Democratic gubernatorial candidates largely agreed on one thing at a housing forum: the state’s affordability crisis isn’t just about money — it’s about how hard it is in the Golden State to build. From modular construction to statewide permits and penalties for cities that won’t comply, candidates offered competing visions for breaking through the red tape they say is choking housing supply.
The ideas emerged during a nonpartisan May 8 forum moderated by Ezra Klein and hosted by The New York Times, the San Francisco Foundation, and the Housing Action Coalition, where Democratic candidates Xavier Becerra, Matt Mahan, Katie Porter, Tom Steyer, and Antonio Villaraigosa faced questions about housing production, homelessness, and affordability ahead of California’s June primary.
The top Republican candidates, Chad Bianco and Steve Hilton, were invited to the forum, but Klein explained that "they couldn't make it" to the event.
Here are key takeaways from the forum, where topics included incentivizing housing, addressing homelessness, and more:
Addressing the high cost and slow rollout of housing projects across the state
Candidates largely agreed on what’s driving California’s housing crisis: too little construction and a development process so costly and slow that prices soar before homes are ever built.
Steyer argued that much of the problem stems from the high cost of labor and materials, saying the state needs to “make some real changes” to produce affordable homes. He proposed moving away from traditional on‑site construction in favor of modular housing, with the state purchasing prefabricated components — similar to an auto supply chain — and providing them to developers.
Porter focused on cutting bureaucracy, calling for a single statewide development permit to streamline approvals and reduce delays. Shorter timelines, she said, would translate directly into lower construction costs.
San Jose was repeatedly cited as a model for faster housing production. Mayor Matt Mahan said the city simplified its approval process and offered exemptions to developers who comply with zoning rules, helping projects move more quickly. He said he would support a similar “builder’s remedy” approach at the state level.
Mahan, Villaraigosa, Becerra, and Porter also pointed to local “impact fees” — one‑time charges imposed by cities and counties — as a major cost driver, arguing the state needs to rethink how those fees are applied to new housing.
Incentivizing cities and developers to process housing development
Villaraigosa contended that rather than imposing new taxes on homeowners and businesses, the state should revive housing redevelopment programs. He said those efforts could incentivize cities to approve new projects by allowing them to reinvest property tax increment revenues back into local development.
Echoing that argument, Becerra said the state should create clearer, more reliable funding pathways for city and county leaders who are working to expand housing and comply with California’s Housing Element requirements.
However, Becerra cautioned against treating such funding as an unrestricted pool. Instead, he argued the state should prioritize communities that are actively partnering with state officials to implement approved housing plans. Cities and counties that refuse to comply with the law or fail to build approved housing, he added, should face penalties.
In addition to Becerra, both Steyer and Porter voiced support for pursuing new legislation to create billions of dollars in bond funding, framing it as a way to accelerate housing construction and incentivize local governments to move projects forward.
What went wrong with California's homelessness policy? How would candidates try to address it?
Klein then shifted the discussion from housing development to homelessness, asking candidates what California had done wrong and how they would address the crisis.
Becerra, who previously served as U.S. secretary of health and human services under President Joe Biden, said that while California has spent heavily to move people off the streets, it ultimately “didn’t focus on outcomes.”
He argued the state failed to provide the mental health services people need to remain housed. Instead, Becerra said, California should focus on residents “on the edge” of homelessness by creating a stabilizing fund that city leaders could use to provide immediate financial assistance.
The proposal was modeled after Santa Clara County’s homelessness prevention program, which offers short‑term emergency funds for rent, security deposits, or other housing-related costs to prevent people from falling into homelessness.
San Jose Mayor Matt Mahan said the program has proven both effective and cost‑efficient. He noted that 92% of households that received assistance remained housed and that the program costs the county an average of about $6,500 per person — far less than the long‑term costs associated with homelessness.
Klein acknowledged that direct financial assistance sounds promising, but questioned whether the state could implement such a system without it becoming bogged down by bureaucracy and red tape.
Porter countered that California already operates similar programs that provide families with direct financial support. She argued the state could streamline those efforts by consolidating several assistance programs into a single system that delivers funds directly to households.
“Replacing five or six different programs designed to help you meet your basic needs with something like CalNeeds or CalNecessity,” Porter said. “It’s one program, it’s one chunk of money — and you trust families to figure out what they need to do to stay afloat.”
Steyer and Villaraigosa, meanwhile, said the state should focus on expanding emergency interim housing programs that provide short‑term private units and support services as a bridge out of homelessness.
Steyer argued that the state’s current approach has failed, pointing to the limitations of shelters and permanent supportive housing.
Villaraigosa echoed that criticism, noting that despite spending $24 billion at the state level, homelessness has continued to rise. He said only two approaches — rental assistance and temporary housing — have consistently shown results, and urged the state to expand those programs rather than, as he put it, chasing “perfection.”
When does California vote for a new governor?
The primary election will be held on June 2, and the two top vote-getters for governor, regardless of political party, will advance to the general election on Nov. 3.
See California governor race polls
A SurveyUSA poll released on Monday, May 4 found that 20% of voters would cast their ballot for Hilton if the primary election was held today. Following him was Steyer at 18%. The only other two candidates to get double-digit support were Bianco and Becerra.
Meanwhile, aseparate poll shared by the California Democratic Party on May 4 found that 18% of likely voters would support Hilton if the primary were held today. However, 18% of likely voters would also support Becerra; the former U.S. Secretary of Health and Human Services beat Steyer, who has frequently led among his fellow Democratic candidates in the polls.
How to check if you’re registered to vote
Not sure if you are already registered to vote? You can check on the California Secretary of State’s website by submitting your name, date of birth, and a few other pieces of information.
Noe Padilla is a Northern California Reporter for USA Today. Contact him at [email protected], follow him on X @1NoePadilla or on Bluesky @noepadilla.bsky.social. Sign up for the TODAY Californian newsletter or follow us on Facebook at TODAY Californian.