In a working market, businesses can adjust to high demand by increasing production to prevent a shortage. California’s strict regulations for new housing have prevented homebuilders from increasing their housing production in a variety of ways, but perhaps most importantly, regulations have made it impossible to build less‐​expensive types of housing like duplexes or apartments. Reforming California’s land‐​use regulations is a key step — and probably the most important step — toward fixing the state’s housing shortage.