New RAND Report Reaffirms Council’s Continuing Fight Against Soaring Housing Costs in California

A new RAND report comparing multifamily housing costs across California, Texas, and Colorado found that California is the most expensive state in every cost category analyzed. The report highlights the importance of the work the Bay Area Council is doing to remove obstacles, reduce onerous fees, and ease other barriers that make building housing in California so difficult, time-consuming and expensive.

In Texas, development fees average around $1,000 per unit. In California, that number skyrockets to $29,000. These higher costs are also closely tied to longer production timelines—projects in California take over 22 months longer to complete than in Texas.

The study identifies a few key policy differences behind these disparities. For one, California requires affordable housing developers to pay abnormally high wages and architectural fees, discouraging production. Secondly, the state is in need of policies that streamline approvals and shorten development timelines, something that would help significantly reduce costs.

However, meaningful progress is being made. One example the study highlights is California’s Builder’s Remedy law—a policy the Council sponsored and helped pass in 2024—which holds local jurisdictions accountable for housing goals. This was just one of several bills we’ve helped pass in recent years that delivered powerful reforms. In 2025, we’ve been building on that success with major legislative advances: just this month, Council-sponsored housing reform bills AB 609 (Wicks), SB 607 (Wiener), SB 79 (Wiener), and SB 71 (Wiener) all advanced out of their house of origin. And last week, AB 609 (Wicks) and SB 607 (Wiener) were included in the California legislature’s revised budget. We are thrilled to see these results and especially proud to have been chosen by Assemblymember Buffy Wicks to help lead her effort against the chaotic thicket of local permitting requirements that gum up housing approvals.

While RAND’s findings underscore the work ahead, the Council has been consistently at the forefront of the fight for equitable, accessible housing, and we’re continuing to achieve real wins. To learn more about our housing initiatives or to submit a project for support, contact Vice President of Public Policy Louis Mirante.