Construction Defect Liability in California: How Reform Could Increase Affordable Homeownership Opportunities
Published On July 12, 2024
This policy brief examines one particular challenge facing new condominium development in California: the state’s construction defect liability laws. Construction defect liability laws are intended to protect home buyers from bearing the cost of fixing defects in newly built homes. However, the scope of California’s construction defect liability laws pose a significant disincentive for developers and contractors to build new condominiums.
We explore the history of such laws in California and provide a comparative analysis of approaches to construction defect liability in other states and Canada. Our findings illuminate opportunities for legal reform and identify further avenues of research.
Notice of Correction: On January 8, 2025, we restated the magnitudes of condo starts presented in Figures 3a, 3b, 3c, 3d, and 4. While none of the trends or conclusions from this research are affected, the original charts were generated using an incorrect method: summing a quarterly-level rolling annual average instead of summing the quarters themselves.
Authors:
Muhammad Alameldin, Policy Associate
Sarah Karlinsky, Research Director
Share This Post:
Related Articles
Pro-Housing Designation Programs: How States are Incentivizing Pro-Housing Reform
In recent years, state governments have taken a more active role in encouraging local policy change to increase housing production…
The First Step Is The Hardest: California’s Sliding Homeownership Ladder
The paper examines the erosion of access to homeownership and the role that rising housing prices play in the ability…
ADUs for All: Breaking Down Barriers to Racial and Economic Equity in Accessory Dwelling Unit Construction
Authors: Julia Greenberg, Research Manager, Center for Community Innovation Hannah Phalen, Graduate Student Researcher, Terner Center for Housing Innovation…
Reducing Bias in Home Appraisals: The Roles for Policy and Technology
An appraisal assigns economic value to a home and is a key part of the process of selling, buying, or…
