California Speeds Up Housing, Sparking Praise and Backlash

California Gov. Gavin Newsom’s aggressive push to slash red tape and accelerate housing development has sparked both excitement and alarm across the state.

On July 1, Newsom signed two new laws that overhaul parts of the landmark California Environmental Quality Act (CEQA). At the signing ceremony, he called the move urgent and transformative: “This was too urgent, too important, to allow the process to unfold as it has for the last generation.”

Framing the new approach as “a budget that builds,” Newsom said the reforms are meant to reflect “a new mindset — one that prioritizes delivery over delay.”

The new exemptions apply to infill housing projects under 20 acres not located in hazardous zones, as well as to childcare centers, food banks, wildfire prevention work, advanced manufacturing and the state’s high-speed rail.

Developers Applaud the Overhaul

For developers, the changes promise relief from the delays and lawsuits that have long slowed California housing starts. “This is major, major reform. We are thrilled,” said Sean Burton, CEO of Los Angeles-based multifamily developer Cityview, in an interview with The Wall Street Journal.

Burton said the changes could make California attractive again for investors: “A lot of investors have redlined California. Now, you’re going to see a lot of people give California a fresh look.”

Environmental Groups and Labor Unions Push Back

But the Sierra Club California slammed the move as “half-baked,” warning that it “could disproportionately damage low-income neighborhoods and fragile ecosystems.”

Labor leaders share similar fears. Some worry that fewer review requirements could weaken labor standards. Samuel Appel, policy director at United Auto Workers for the Western U.S., told Cal Matters, “We’re concerned not only about toxic work sites that our members will be working at and organizing in. We’re concerned about the toxic communities that we’d be living in.”

Unions have even hinted at withholding support for future housing initiatives if worker protections and environmental safeguards aren’t guaranteed.

Why It Matters

‍California has some of the nation’s most expensive housing markets and a severe housing shortage, driving home prices and rents sky-high. CEQA, while credited with protecting the environment for over 50 years, has been blamed by many for slowing desperately needed urban infill and affordable housing.

What’s Next

‍Supporters argue the changes could finally move projects forward that have been stuck for years — but critics warn that cutting corners on oversight could backfire. Legal challenges are already expected from environmental groups, and political battles over additional housing legislation are almost certain as the state balances the need for housing with its ambitious climate and labor goals.

Originally reported by Jeff Vasishta in Yahoo Finance.