An increase in building regulations has made it difficult to build new construction projects in California. Homeowners are now leaning more towards making improvements to their existing homes. California has several laws that restrict homeowners and commercial property owners build new houses, causing a severe housing shortage in the state.
Regulations have been cited as the major problem.
Homeowners are not allowed to build more than one house on a single lot
There was a law that restricted homeowners from building more houses on their land. However, there is a new law; SB 9 that now allows homeowners to build more than one house on their land.
Before they introduced the new law, building a new house on your land could not be possible. This would have made remodeling your existing house the only rational option.
There is a restriction on the construction of high-rise buildings in residential areas
Landowners are prohibited from building high-rise buildings in residential areas. Change of use from single-family to multifamily units has become a problem further putting pressure on homeowners to option for remodels and repurposing of spaces such as garages and basements.
Homeowners are not allowed to demolish their homes without a permit
This law prohibits homeowners from demolishing their homes without a valid permit. You might be required to follow a long process to acquire the permit. Your contractor is also required to get an acknowledgment letter before getting a permit. This means that your project could be derailed. The longer your project takes, the more investments you make.
A flurry of new legislation has, however, sought to reverse this trend. According to the latest statistics, the state seems to be picking up pace, especially after the Neighborhood Watch Voices proposal.
Construction regulations restrict homeowners from building new projects or make it very difficult and costly to even try. This is about to change. Building permits and restrictions on the type of buildings you can construct hinders contractors and homeowners from developing new projects, and are about to change. However, the current pace of population growth pales in comparison to the new housing projects, specifically the 2005 baseline when over 150,000 housing units were built.
