The costly problem many cities are currently tackling is creating publicly subsidized, affordable housing for low- and moderate-income households.
CityLab's reporting raises the question of scale as a central problem for housing affordability. They argue the high per-unit construction costs for affordable housing coupled with the strong urge to make these new units as amenity-rich and environmentally friendly as possible results in less money for fewer units built.
California Governor Jerry Brown ... said that he’s not putting any new state resources into subsidizing affordable housing until state and local governments figure out ways to bring the costs down. Last year, opposition from labor and environmental groups blocked the governor’s proposal to exempt affordable housing from some key regulatory requirements. Brown had offered $400 million in additional state funds for affordable housing if that proposal was adopted. Brown took that money off the table.