Policy Currents | The newsletter for policy people
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** April 3, 2025
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Building Apartments in California Costs More Than Twice What It Costs in Texas
A new RAND study finds that the cost of building multifamily housing in California is 2.3 times higher than in Texas and 1.5 times higher than in Colorado.
Our researchers analyzed more than 140 completed projects in the three states. They found that California was the most expensive for multifamily housing production in every cost category they considered.
What explains this difference? It's largely driven by state and local policies that contribute to long permitting and construction timelines, as well as higher local development fees. The time to bring a project to completion in California is more than 22 months longer than the average time required in Texas. And municipal impact and development fees average $29,000 per unit in California, compared with less than $1,000 in Texas and $12,000 in Colorado.
The researchers also identified actions that could help lower production costs and increase housing affordability in California. For instance, California could adopt a policy similar to Texas state law that requires local jurisdictions to approve or deny a proposal for a housing development within 30 days. Other policies--synchronized rather than sequential inspections, for example--could also help lower costs by reducing construction timelines.
For decades, California has ranked second only to Hawaii in housing and rental costs, and the state has seven of the 10 most expensive metropolitan areas in the nation. Learning lessons from other states could help California address its long-standing housing crisis.
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Taiwan Needs a New Playbook
As Taiwan faces uncertain security commitments from a new U.S. administration and increased assertiveness by China, its strategic dilemma is worsening. Taipei is responding--boosting defense spending and exploring a trade and investment deal with Washington--but is it doing enough? The short answer, say RAND's Jude Blanchette and Gerard DiPippo, is no. The island's old playbook will no longer work. "Taiwan must do more for its own defense and resiliency, and fast."
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WVU and RAND Launch Partnership Focused on Workforce Needs
This week, West Virginia University and RAND announced an innovative collaboration focused on workforce development and education. Faculty and students at WVU will work alongside RAND researchers to identify workforce trends and solutions--with a specific focus on apprenticeships, career pathways, and technical education. This partnership will "provide a model for how to harness the power of policy research and analysis to serve the needs of such an important part of the country," says RAND president and CEO Jason Matheny.
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** RAND Recommends
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- RAND's Wendy Troxel has a few tips for how to deal with brain fog during menopause: improve sleep quality, get regular exercise, and build positive social connections.
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** Events
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Innovations in Veteran Suicide Prevention
Thursday, April 17, 2025 (Online)
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Town Hall on RAND's Survey of State Maternal Health Initiatives
Thursday, April 17, 2025 (Online)
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Policy Lab: Mapping the Use of High-Quality Instructional Materials
Wednesday, April 30, 2025 (Online)
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