California’s Housing Crisis: How a Bureaucrat Pushed to Build

Ms. Trauss sued a few months later. The great irony was that nobody was more unhappy about it than Mr. O’Brien. He had spent years and millions of dollars proposing two completely different projects. Now some activist group he’d never heard of was suing the city, and him, on behalf of his original project — in essence, suing him on behalf of him.

CARLA’s lawyer had the impossible job of trying to convince a judge that Lafayette had unfairly forced Mr. O’Brien to build 44 houses instead of 315 apartments, while Mr. O’Brien sat on the other side more or less going, No they didn’t. CARLA lost the argument, but after it threatened to appeal, Mr. O’Brien ended up agreeing to pay its legal fees. He had now argued, and paid for, both sides of the same case.

Other litigation continued. Members of Save Lafayette sued to force a referendum where residents could rescind the 44-home plan, and eventually, they succeeded. Ms. Trauss and her fellow insurrectionists moved on to other battles, filing more lawsuits for more housing until they started winning. Meanwhile, the movement she helped found — YIMBY, for Yes in My Back Yard — has become an international phenomenon, with supporters in dozens of housing-burdened regions including Seattle; Boulder, Colo.; Boston; Austin, Texas; London and Vancouver.

Development battles are fought hyperlocally, but the issues are resonating everywhere. In late 2018, Minneapolis became the first major city in America to effectively end single-family zoning. Oregon followed soon after. California and New York have significantly expanded protections for renters. And as more economists give credence to the notion that a housing crisis can materially harm G.D.P., by exacerbating inequality and reducing opportunity, all of the Democratic presidential candidates have put forth major housing proposals.

They run the gamut from tax breaks for renters, to calls for more affordable housing funds, to plans for bringing federal muscle to bear on zoning reform. These ideas share a central conflict: Can city leaders — who in theory know local conditions best — be trusted to build the housing we need? Or will they continue to pursue policies that pump up property values, perpetuate sprawl, and punish low-income renters?

Mr. Falk began his career on the local control side of that debate. But somewhere along the Deer Hill odyssey, he started to sympathize with his insurrectionist opponents. His son lived in San Francisco and paid a fortune to live with a pile of roommates. His daughter was a dancer in New York, where the housing crunch was just as bad. It was hard to watch his kids struggle with rent and not start to think that maybe Ms. Trauss had a point.

“I’m not sure individual cities, left to their own devices, are going to solve this,” he told me once. “They don’t have the incentive to do so, because local voters are always going to protect their own interests instead of looking out for people who don’t live there yet.”

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