Let’s Unpack the Grand Jury Report on Housing

The Santa Barbara County Civil Grand Jury just dropped a detailed, and at times blistering, report titled “Santa Barbara County South Coast Housing Crisis - A Call to Action” (June 17, 2025). It’s a must-read for anyone trying to understand why, despite big talk and ambitious housing plans, we still aren’t building enough homes, especially on the South Coast.

So let’s unpack what the Grand Jury is actually saying, and what should we be doing about it?

Why Aren’t We Building?

The report outlines some painfully familiar obstacles:

  • High construction costs: It now costs close to $1 million to build one affordable unit. That’s not sustainable without serious subsidies.

  • Red tape & review cycles: Long permitting timelines, overlapping design and environmental reviews, and public opposition bog down even well-intentioned projects.

  • Lack of land & funding: Cities are required to plan for housing, but they’re not required to provide land or fund the projects. And there’s only so much developers and nonprofits can do on their own.

There’s also the elephant in the room: short-term rentals and second homes, which reduce the available housing stock and drive up prices. The Grand Jury points out that while the County has cracked down in some areas, enforcement remains weak overall.

Action Items

The report doesn’t just criticize… it offers a playbook. Here’s what they’re calling for:

  • Appoint a Housing Czar (yes, they really said “czar”): Someone in each jurisdiction whose sole job is to shepherd housing projects through the maze of approvals.

  • Use Public Land: Cities and the County should sell or lease underused public properties for affordable housing.

  • Speed It Up: Expand ministerial (i.e., streamlined) approvals, reduce discretionary review, and cut red tape.

  • Grow Local Housing Trust Funds: Public dollars are tight, but local trust funds (fueled by philanthropy, fees, or grants) can be powerful tools for closing the funding gap.

  • Tackle Vacancy: Look at vacancy taxes, better enforcement of short-term rental rules, and other ways to discourage empty homes in a housing-starved region.

What About Water?

No surprise, people still worry that we don’t have enough water for new housing.

Here’s the Grand Jury’s answer: We do.
Their separate water report shows that local agencies have planned for growth with desalination, recycled water, conservation, and new groundwater supplies. In many cases, new residential development uses less water than the ag land it replaces.

Translation: Water is not the bottleneck. Policy and politics are.

What’s Working?

To be fair, it’s not all bad news. The report highlights some progress:

  • ADUs are booming: more than 1,000 units permitted in recent years, though most are market-rate.

  • Mixed-income projects are moving, including partnerships with People’s Self-Help Housing and others.

  • The County and cities are growing their housing trust funds, with new commitments from Santa Barbara and Goleta.

But these wins are still the exception. The question is whether we can scale them fast enough to make meaningful impact.

Why This Matters

If we don’t build enough housing, especially affordable housing, Santa Barbara’s future is at risk:

  • Our workforce will keep commuting from farther away.

  • Young people and families will leave.

  • Local businesses will struggle to hire.

  • Our economy will hollow out, even as our streets, parks, and schools show the strain.

This report isn’t just about housing. It’s about who gets to live here.

city-council-housing concerns

Santa Barbara City Council addresses housing concerns.

Photo: Ingrid Bostrom

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