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California Is Running Out of Safe Places to Build Homes

  • California faces a severe housing shortage intensified by years of traumatic wildfires and officials wary of building in high-risk areas.
  • This shortage stems from underbuilding relative to demand and restrictive policies that stifle new developments, a pattern seen also in Hawaii and the wider West.
  • Governor Gavin Newsom recently approved a bill that waives certain environmental regulations for numerous housing developments in an effort to speed up construction and help alleviate the state's cost-of-living challenges.
  • California has a shortage of approximately 1.8 million homes, representing about 12.2 percent of its 14.7 million housing units, while the nationwide shortage nears 5 million units.
  • This shortage drives residents to neighboring states, pushing up prices there and underscoring the urgency of boosting supply to prevent further economic and social strain.
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Newsweek broke the news in United States on Wednesday, July 2, 2025.
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