The San Francisco Bay Area is generally considered the most expensive regional housing market in the country. Because the region added jobs and residents at a faster rate than housing, rents and home prices escalated. Moreover, small municipalities, common in the most job-rich parts of the Bay Area, have strong political incentives to resist development of new multifamily housing. Regional Governance and the Politics of Housing in the San Francisco Bay Area explains how a decentralized, localistic structure of government shapes land-use politics in ways that exacerbate housing shortages and inequalities. The authors evaluate six potential reforms, arguing that targeted changes to local and regional institutions could generate durable improvements to the region’s housing opportunities. The main lesson from the case of the San Francisco Bay Area is the need to focus on governance when addressing the housing challenge. As the authors effectively illustrate, leaving a solution up to individual cities is unlikely to lead to increased housing supply.
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