REAL ESTATE NEWS

California's affordability problem dominated the first day of PCBC as industry leaders and policymakers urged a reset in how the state permits and produces housing. Produced in partnership with the California Building Industry Association (CBIA) and the Leading Builders of America, the conference convened homebuilders, developers, manufacturers, architects, lenders and officials to focus on the future of residential development—and what needs to change for more deals to pencil.

CBIA Frames Housing As California's Biggest Economic Issue

Dan Dunmoyer, president and CEO of CBIA, opened the event by telling attendees that housing is now California's most pressing challenge and the issue most likely to keep residents awake at night. While he acknowledged the headwinds facing builders, Dunmoyer urged the industry to stay focused on solutions, describing PCBC as a venue to strengthen relationships and help shape the next generation of housing across the state.

Dunmoyer also spotlighted Proposition 45, a statewide ballot measure he said could streamline environmental review for housing projects. He encouraged builders, developers and investors to evaluate how the proposal could affect their pipelines and California's ability to expand production at scale. According to Dunmoyer, regulatory changes of this kind will be critical for shortening project timelines, lowering carrying costs and making new construction more financially feasible.

San Diego Shows What Faster Permitting Can Do

San Diego Mayor Todd Gloria underscored the urgency of the moment, calling housing "the most important issue in the state" and stressing that local governments must work hand-in-hand with the private sector to increase supply. "We are all in the business of building the future," he told attendees, adding that cities cannot meet demand without builders and investors at the table.

Gloria pointed to San Diego as evidence that permitting reform can move the needle. According to the mayor, the city has significantly reduced approval timelines and is now green-lighting thousands of units much faster than in prior years. Those changes are beginning to show up in the market, with rents stabilizing after years of steady increases, even as affordability remains a challenge.

Gloria credited the development community for helping bring projects online more quickly and at lower cost through innovation and investment, and said local governments have a responsibility to keep removing barriers to housing production. "I will push for reforms to make it easier to build homes that San Diegans need," he said, emphasizing that faster approvals and collaboration are essential for sustaining recent progress.

Restoring Attainable Homeownership For Working Families

Despite the improvements in San Diego, Gloria cautioned that California is still far short of the housing needed to meet demand and that continued partnership between cities and builders will be essential. He urged attendees to keep building and, importantly, to keep believing in the state's long-term prospects. "Continue to build communities all across the state," he said.

Drawing on his own family's experience, Gloria recalled how his parents—a hotel maid and a gardener—were able to buy a home in San Diego and questioned whether similar opportunities exist today for blue-collar households. "Blue-collar workers should have a place for them," he said, arguing that public policy and housing production must work together to restore attainable homeownership. According to the panelists, that goal will require sustained regulatory reform, faster permitting and public-private collaboration—exactly the themes that set the tone for this year's PCBC conference.

Proposition 45, San Diego's permitting push and the broader call for collaboration all point to the same investment thesis echoed throughout the opening session: when California can finally align policy, process and production, the state's housing market—and the capital targeting it—stands to benefit.

Source: GlobeSt/ALM