LOS ANGELES, California — Real estate mogul Josh Altman is pushing back against the latest political solution to the California housing crisis, arguing that Governor Gavin Newsom’s proposed $11.2 billion bond measure misses the mark. According to the Altman Brothers Real Estate owner, throwing billions of dollars at the problem will fail unless the state first dismantles its notorious regulatory red tape.
Doubling Construction to Close the 1.5 Million Home Deficit
The Golden State is facing a staggering residential deficit, requiring an estimated 2.5 million new housing units and currently sitting short by roughly 1.5 million homes. To simply maintain parity with population growth, Altman notes that California must drastically accelerate its construction output. Right now, the state builds about 100,000 homes annually, but a pace of 200,000 is required to meet demand.
Despite these glaring numbers, Altman insists that the governor’s $11 billion financing plan won’t successfully accelerate construction because California suffers from the longest permitting timelines and the highest regulatory costs in the nation.
“You can finance houses all day long, but you cannot finance your way around the red tape,” Altman explained, emphasizing that streamlining the approval process must be the true focal point of any housing legislation. Summing up the industry’s frustration with the current bureaucratic hurdles, he offered a blunt maxim: “Money builds, red tape kills.”
Luxury Market Chilled by Wealth Tax Fears
The regulatory gridlock isn’t the only headwind stalling California’s real estate sector; the high-end market is also feeling the squeeze from proposed state tax policies. The issue recently gained mainstream attention when reports surfaced that entrepreneur Kylie Jenner pulled her sprawling $48 million mansion off the market.
While Altman declined to confirm the specifics of Jenner’s individual listing, he used the moment to highlight a much larger trend driving high-net-worth sellers away: the looming threat of a state wealth tax. He pointed out that affluent buyers are actively shying away from premium properties because the additional tax burden fundamentally changes the investment’s appeal.
“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.
According to the real estate expert, these tax proposals are triggering a broader existential debate among the ultra-wealthy. Buyers are no longer just looking at the property itself; they are questioning whether they actually want to maintain California residency, absorb the state’s steep tax rates, or continue operating their businesses within its borders.
“Capital is mobile and wealth has lots of choices,” Altman warned. He noted that while a wealth tax might not impact the average citizen, it is actively chilling high-end sales and threatening to drive vital investment dollars out of the state.