Construction Defect Liability in California: How Reform Could Increase Affordable Homeownership Opportunities

Condominiums—homes for purchase in multifamily buildings—have long represented a major entry point for more affordable homeownership. However, condominium development has significantly lagged across California over the past several decades.

California’s construction defect liability laws are one of the key challenges impacting condominium development. These laws are intended as important consumer protections to protect home buyers from bearing the cost of fixing defects in newly built homes. However, the scope of these laws poses a disincentive for developers and contractors to build new condominiums.

Our new policy brief delves into the history and impact of construction defect liability laws in California.  The brief provides a comparative analysis of alternative approaches to construction defect liability in Canada and in states like Hawaii, New Jersey, and Utah. The findings highlight opportunities for reform and areas where further research is needed.

Read the full brief here.