Solve the Housing Shortage by Making Houses More Expensive

California is suffering from a decades long housing shortage. This shouldn’t surprise anybody. The regulatory burden in California has been increasing along with the population, which has made new construction more expensive than it otherwise would be. But instead of working to relieve the shortage by allowing homes to be built for less, the California bureaucrats have decided to make building new homes even more expensive:

On Wednesday, the California Energy Commission approved a set of standards that will require most new homes built in the state after 2020 to include solar panels on their roofs.

The standards (PDF) apply only to single-family homes and certain low-rise condos, townhomes, and apartments. Exceptions are made for homes with roofs that would receive excessive shade during the daytime or homes with roofs too small to benefit from a few solar panels.

The last two exemptions are interesting because they have the potential to change how houses are predominantly built in California. I foresee a trend in small roofs and heavy shading.

This legislation is also, rather obviously, aimed at coercing a preference for high-density residential. While that may make sense in an extremely dense urban area like Los Angeles, it doesn’t make sense to implement such a requirement statewide since much of California is actually rural and therefore space isn’t at a premium. However, bureaucrats are seldom aware that the existence they experience in their capital city isn’t the experience of everybody in their state, which is why centralized planning always turns into such a fiasco.

One thought on “Solve the Housing Shortage by Making Houses More Expensive”

  1. This is actually an attempt to bail Elon Musk out.

    By requiring solar, California is hoping to force millions, if not billions into Musk’s solar panel and battery businesses, with the hope that it will save his car company.

    I’m guessing that he spent a lot on lobbying for this.

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