08/21/2026
We want to build more housing, but we are hamstrung by our own processes
We say we want to build more housing, we want to pay better wages, we want to prevent displacement, etc. and in pursuing so many goals at once, we become blocked by our own processes put there largely in good faith. Take this except from the book Abundance that goes into the uphill challenge an LA developer faces in getting housing built:
Then there are the higher standards that public money requires developers to meet. "We're required to pay prevailing wages, so there's at least a 20 or 30% premium on the labor costs," Tong says. "We have sustainability requirements we need to maintain. I've had projects where the planning department required a higher-quality air ventilation system because we were a certain distance from the freeway. All the affordable housing development is subject to Green building requirements. The standards in California are higher than anywhere else in the country. And you are not just required to build to the standard, you also need to hire a consultant to confirm you've built to the standard. That adds costs." Every one of these is a worthy goal but so too is building a lot of affordable housing quickly and cheaply. Los Angeles is failing, and failing badly, at doing that. Given that failure, does it make sense to be asking for special air filtration systems for developments near freeways when the alternative, for many of the would-be residents, is a tent beneath the freeway? To pose the question sounds callous. But to refuse to pose the question, given the need for more housing, is cruel.
The clip is from Prog G Podcast by Scott Galloway featuring Ezra Klein and Derek Thompson (the authors of Abundance)