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flag California’s housing crisis worsens as VMT rules hinder development, limiting affordability and supply.

flag California’s housing crisis persists, with only 18% of households able to afford a median-priced single-family home. flag New home permitting fell to about 102,000 in 2024 and remained 16% below average in early 2025. flag A major barrier is the state’s Vehicle Miles Traveled (VMT) regulations, which impose fees on housing outside urban areas, discouraging development in suburban and rural regions. flag Critics say the rules, aimed at promoting high-density urban living, add hundreds of thousands in compliance costs, making projects economically unviable. flag Rushed legislation last year failed to fix flaws, prompting calls for reform in 2026 to balance environmental goals with housing supply and affordability.

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