$565,000 Median Home in OC

As high as Orange County home prices have climbed, talk of a "real estate bubble" is nowhere to be heard. In fact, an OC Register headline writer nails reality with this quote:

Experts say homebuyers, scared that prices will rise, rush into market, making prices rise.

That's not all that's nudging up cost. Regulatory insanity is also doing its work by reducing supply. A few years ago I had a small hand in setting aside 34,000 acres of land aside in OC as wildlife habitat so homebuilders could build on other, less environmentally sensitive land. We had to do that because of scientifically flawed endangered species listings, depriving the market of thousands of potential new homes in the process.

Another example: Yesterday the California Coastal Commission (Just tuck a "p" behind those initials and you get "CCCP," an indication of the commission's view of itself) approved the 349-home Brightwater project in Huntington Beach. The project was whittled down by 1,600 acres over its 30 years in the approval process. In 2002, 1,235 homes were approved, but in such an overregulated manner that the owner appealed. Three years later, the project was approved with 349 homes, and the owner decided to lick his wounds and call it a victory.

Can you say "artificially limited supply?" Some other examples:

• Marblehead in San Clemente started processing in 1974 -- 31 years ago -- with the idea of building 2,099 homes on 248 coastal acres. In 2002, it got through the Coastal Commission with 212 homes.
• Douglas Park in Long Beach is an environmentalist's dream -- the reuse of already developed land in the heart of the city. Still, local NIMBYs forced the home count from 3,600 to 1,400.
• A planned community we're working on now is 81% natural open space and we fully expect to be sued by major national environmental groups.
  

Are environmentalists really just secret capitalists, driving out much-needed homes so their own homes' value can increase? Maybe they're not so silly after all.