The Battle for the California Dream: Housing Dominates 2026 Gov Race

SACRAMENTO, CA – March 06, 2026 – The dream of homeownership, once a cornerstone of California's identity, has become a defining battleground for the state's 2026 gubernatorial race. Six leading candidates from across the political spectrum convened in Sacramento on Friday for a high-stakes forum hosted by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), where they acknowledged a stark reality: the state's housing affordability crisis has reached a critical tipping point, demanding urgent and decisive action.

The "Homeownership Matters" forum brought together a diverse field of hopefuls: former U.S. Health Secretary Xavier Becerra, entrepreneur Steve Hilton, San Jose Mayor Matt Mahan, former Congresswoman Katie Porter, Congressman Eric Swalwell, and former Los Angeles Mayor Antonio Villaraigosa. While their proposed solutions varied, the consensus on the problem's severity was unmistakable, signaling that housing will be a central and non-partisan pillar of the upcoming election cycle.

A Crisis of Consensus

Moderated by C.A.R. 2026 President Tamara Suminski and CEO Phil Hawkins, the discussion quickly moved beyond platitudes to the grim statistics that haunt millions of Californians. With data showing roughly 80% of families unable to afford a median-priced home and construction costs spiraling, the candidates were pressed to offer more than just sympathy.

"Housing affordability is one of the defining challenges facing California," said Phil Hawkins, C.A.R. CEO. "What we heard today is clear: candidates across the political spectrum recognize that expanding pathways to homeownership must be a top priority if we want to preserve the California Dream."

This sentiment was echoed by the candidates, who framed the issue not just as an economic problem but as an existential threat to the state's future. The conversation highlighted the widening chasm between wages and home prices, the rising age of first-time buyers, and the exodus of residents seeking affordability elsewhere. The forum underscored that the crisis is no longer a niche issue but a mainstream concern affecting the state's workforce, economic competitiveness, and social fabric.

"What we learned today is that homeownership is about more than housing supply; it is about economic mobility, generational stability, and the long-term strength of our communities," said Tamara Suminski, C.A.R. 2026 president. "If working families cannot put down roots in their communities, the consequences extend far beyond the housing market."

Divergent Paths to Affordability

Beneath the surface of shared concern, the forum revealed distinct ideological approaches to untangling California's housing knot. The candidates outlined visions that ranged from targeted government intervention to sweeping deregulation.

Among the Democrats, a common theme was a multi-pronged strategy combining supply-side reforms with support for buyers and renters. San Jose Mayor Matt Mahan, leveraging his executive experience, advocated for replicating his city's success in expediting housing approvals and cutting fees. He stressed the need to attack "junk lawsuits," hold local governments accountable, and reform the California Environmental Quality Act (CEQA) to spur infill development.

Former Congresswoman Katie Porter directed her focus toward market forces, blaming "Wall Street" for exacerbating the crisis and calling for federal investment. Her plan includes a tax credit for building starter homes, pressing the government to release public land for development, and increasing funding for low-income housing programs.

Xavier Becerra emphasized accountability, demanding that cities meet their housing goals and properly utilize the billions allocated for housing. He also called for expanding the use of modular housing to speed up construction, framing housing as an issue deeply connected to the state's climate goals.

Former Los Angeles Mayor Antonio Villaraigosa, who has made housing a centerpiece of past campaigns, reiterated his call to "cut red tape and bureaucracy." He championed streamlining CEQA and fast-tracking all types of housing—from homeless shelters to market-rate homes—arguing that a massive increase in supply is the only path to controlling prices.

Congressman Eric Swalwell positioned himself as a leader with local government experience from his time in Dublin, a city he helped guide to prosperity. He argued that the same principles of practical, pro-growth policy could be applied statewide to tackle affordability, implicitly distancing himself from recent state-level policy gridlock.

In stark contrast, Republican entrepreneur Steve Hilton offered a vision centered on radical deregulation and tax reduction. He called for an end to what he termed the "war on single-family homes," advocating for policies that favor "building out" over dense urban development. Hilton targeted building codes, environmental lawsuits, and development fees as primary drivers of high costs and vowed to protect Proposition 13 while addressing litigation tied to CEQA.

The Regulatory Gauntlet

A significant point of convergence among several candidates was the need to overhaul California's notoriously complex regulatory environment. The California Environmental Quality Act (CEQA), a landmark 1970 law intended to protect the environment, was repeatedly identified as a major impediment to new construction, often weaponized in lawsuits to block or delay housing projects.

Candidates like Villaraigosa, Mahan, and Hilton explicitly called for reforming the act. This focus reflects a growing sentiment among policymakers that while the law's environmental intent is valuable, its implementation has had the unintended consequence of stifling the very housing supply needed to create sustainable, transit-oriented communities. The state's construction costs, which are nearly double those in Colorado and triple those in Texas, are frequently attributed to this regulatory gauntlet and union-backed labor agreements.

The discussion also touched upon the state's escalating homeowners' insurance crisis, another critical barrier to ownership. With major insurers pulling back from the state due to wildfire risk, candidates acknowledged the need for a comprehensive strategy that includes better forest management, regulatory reform to stabilize the insurance market, and support for homeowners to harden their properties against disaster.

As the 2026 gubernatorial race continues to unfold, the ideas presented at the C.A.R. forum have set the stage for a substantive and critical debate. While candidates found common ground in diagnosing the severity of the housing crisis, their proposed remedies highlight the deep political and philosophical choices facing California voters. The challenge for each will be to convince an anxious electorate that their plan can finally turn the tide and make the California Dream of homeownership an attainable reality once again.