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

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.

Authors:

Muhammad Alameldin, Policy Associate

Sarah Karlinsky, Research Director

Read the full paper here.

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