3 Ways Developers Can Help Address California’s Housing Crisis

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Seth Gellis, President of CPP Housing.

California’s ongoing wildfires have left devastation in their wake, destroying thousands of structures and displacing countless residents. The impact of these losses is compounded by the fact that California is already in the midst of a severe housing shortage. California’s Department of Housing and Community Development (HCD) estimated that the state needs 2.5 million new homes by 2030. However, fewer than 80,000 new homes are constructed each year, falling well short of this target. Wildfires have only worsened this crisis. In January 2025, two wildfires destroyed more than 16,000 homes in Los Angeles alone.

Rebuilding these communities provides a unique opportunity to address both the housing shortage and wildfire resilience. I believe businesses and developers, in particular, can help lead the way. Prioritizing densification, advocating for streamlined housing approvals and embracing fire-resistant construction technologies can address both California’s immediate needs and the systemic housing supply challenges exacerbated by these disasters.

Densification As A Solution

In order to begin to meet the increased housing demand, producing as many units as possible will be vital. As such, cities and developers must work together to find ways to produce more units. One potential solution is densification. Densification—constructing multifamily units, accessory dwelling units (ADUs) and mixed-use developments—maximizes land use. The benefits are twofold: Densification increases housing supply and creates more walkable, transit-oriented communities.

California’s expansion of ADU laws exemplifies the potential of densification. In 2022, the HCD reported that 23,000 ADUs were permitted statewide, marking an 88% increase from 2019. These units provide a scalable model for increasing housing density in urban and suburban areas without requiring significant new land.

Investing in fire-resistant, dense housing can also benefit the environment and economy. Denser communities reduce vehicle miles traveled, a key factor in lowering greenhouse gas emissions. Additionally, rebuilding with fire-resistant designs can reduce the financial impact of future disasters and could bring insurance companies back to the state. In other words, by mitigating risks, resilient housing can lower costs for homeowners and insurers alike.

Streamlining Approvals For Faster Rebuilding

Housing approvals, especially in certain parts of California like San Francisco, have been notoriously slow, often hindered by complex regulations and lengthy reviews. Even with measures like Senate Bill 35, which streamlined approvals for qualifying projects in underperforming jurisdictions, delays persist.

In wildfire-affected areas, temporary measures like waiving certain permitting requirements have the ability to expedite rebuilding efforts. Advocating to extend such policies and encouraging the governing bodies to create preapproved templates for fire-resistant designs could further reduce delays.

Embracing Resilient Construction Technologies

As California rebuilds, resilience must be a priority. Traditional wood-frame structures are susceptible to fire, making alternative materials and designs critical. Fire-resistant materials like concrete and metal, coupled with innovative construction technologies such as 3D printing, offer promising solutions.

From what I’ve seen, 3D concrete printing is a particularly compelling lower-cost construction type. This technology can allow for rapid construction of homes using fire-resistant materials, reducing costs and increasing durability. Some companies have already used this technology to construct homes in California, demonstrating its scalability and effectiveness along with other housing types.

Balancing Affordability And Innovation

While resilience is vital, affordability remains a cornerstone of California’s housing strategy. Construction costs in parts of the state are among the highest in the world. With potential new tariffs and the high demand for construction labor and materials, we can expect these costs to increase in the coming years. To ensure fire-resistant housing is accessible, public-private partnerships and government incentives are essential. Federal Low-Income Housing Tax Credits (LIHTCs) and California’s own housing tax credits can offset the costs of resilient building methods.

California’s wildfires have underscored the urgent need for smarter, more resilient housing solutions. These efforts could help address immediate needs, reduce future vulnerabilities and help California move closer to solving its long-term housing crisis. Rebuilding smarter is not just a necessity—it’s an opportunity to create safer, more sustainable communities for generations to come.


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