California Housing Crisis: Josh Altman Warns Gov. Newsom’s $11 Billion Bond Cannot Overcome Red Tape

LOS ANGELES, California — As the California housing crisis deepens, real estate expert Josh Altman is casting doubt on Governor Gavin Newsom’s proposed $11.2 billion bond measure aimed at building more homes. While the state looks to finance new construction to combat a severe shortage, Altman argues that the Golden State’s crippling regulatory red tape—not a lack of capital—remains the primary barrier to solving the crisis.

The Math Behind the Shortage

In a recent discussion regarding the state’s housing strategy, Altman, owner of Altman Brothers Real Estate, emphasized that throwing money at the problem will not yield results without fundamental permitting reform. California currently faces a massive housing deficit, needing approximately 2.5 million homes and falling short by 1.5 million units.

“We are building at a pace of 100,000 houses a year, and we need to be building at a pace of double that—almost 200,000 houses a year to even keep up with demand,” Altman explained, noting that this exact conversation has been ongoing for decades without a resolution.

According to Altman, California currently holds the longest permitting timelines and the highest regulatory costs in the United States. He advocates for streamlining the approval process rather than borrowing another $11 billion to fund a flawed system.

“You can finance houses all day long, but you cannot finance your way around the red tape,” Altman stated. Summarizing his stance on the governor’s financial approach, he offered a stark maxim for the industry: “Money builds, red tape kills.”

Wealth Tax Concerns and the Luxury Market Exodus

Beyond the challenges of affordable and middle-class housing, California’s luxury real estate market is also facing significant headwinds due to proposed state legislation. The conversation recently shifted to the high-end sector after reports surfaced that entrepreneur Kylie Jenner took her $48 million mansion off the market.

While Altman declined to confirm specific details about individual listings, he addressed the broader trend impacting luxury sales: a proposed wealth tax. He noted that high-net-worth individuals are increasingly wary of the state’s aggressive tax environment, which is actively chilling high-end real estate transactions.

“The high net worth individual who is looking at a house… are not going to like the house because of the wealth tax,” Altman observed. He warned that such proposals are sparking a larger existential question among the wealthy: whether they truly want to remain California residents, pay the state’s taxes, or continue doing business within its borders.

“Capital is mobile and wealth has lots of choices,” Altman cautioned. He pointed out that while a wealth tax might not affect the average citizen, it is actively deterring the ultra-rich from purchasing high-end properties, ultimately threatening to drive investment and revenue out of the state.