Short answer: CA has been underbuilding housing for close to 50 years ( https://techcrunch.com/2014/04/14/sf-housing/ ) and now has a severe housing shortage, to the point where a parodic response, like "California will try absolutely anything to reduce homelessness, except build more housing" ( https://www.mcsweeneys.net/articles/i-will-do-anything-to-en... ) is the only reasonable one. I've worked on Prop HHH and o…
I don't buy the "just build more" approach. More market rate housing isn't guaranteed to make it affordable, and there is even evidence to suggest otherwise. The principle of induced demand seems to occur here. One way that supply and demand helps the problem is that some move elsewhere for better opportunity.
That is pretty much what has happened. It is clear building more lowers the average. Keep in mind that homeless people may not have even been in "affordable housing" five years ago! Imagine how much better financial situation someone who lost their job last year would be in this year if they had been paying $1000 rent instead of $1400 for five years. Sure they would have spent slightly more in other areas - but they also would have saved more on average and have more fallback.