Michael Smolens: A promising outlook for housing, yet again

Maybe this time will be different.

For several years, the California Legislature and some cities like San Diego have approved numerous measures aimed at increasing home construction in the hopes that will ease the state’s chronic shortage of affordable housing.

Yet progress hasn’t met the promise as large segments of the population remain priced out of the housing market or struggle to keep up with rent.

A new year has dawned on the heels of more pro-housing regulations at the local and state level, and a vague pledge from President Donald Trump for aggressive policies to make housing more affordable nationwide.

Big real estate brokerage firms are anticipating good things this year.

Redfin has dubbed 2026 “The Great Housing Reset,” while Compass has described it as the start of a “new era,” according to CNN.

That could be. There are a lot of things to further encourage development, potentially boosting the housing stock, and some indicators that suggest the housing market, now in a lull, will pick up.

But, as always, there are looming factors that could dampen that positive outlook, most of them economic.

First, let’s start with why more and potentially more-affordable housing may be in the offing. Locally, there was a flurry of legislative housing action last year, particularly near the end.

New regulations will ...