Santa Barbara does not have a housing shortage because we lack rules. We have a housing shortage because our rules do not work.

That is not my opinion. It is the conclusion of the City of Santa Barbara’s own Draft Inclusionary Housing and In-Lieu Fee Study.

The report states plainly, “Overall, this study found that all residential development prototypes are infeasible under the existing program.”

In simple terms, under our current policies, housing does not make financial sense and therefore does not get built.

That finding should stop us in our tracks. The study confirms that this problem is not limited to one type of housing or one scale of project.

It applies to individual homes, small projects and large multifamily developments alike.

When a city’s own commissioned report concludes that none of its housing prototypes are viable, the issue is no longer theoretical. It is a systemic policy failure.

Even more troubling, the report acknowledges that projects only become financially feasible when developers bypass local rules and rely on state density bonus law.

That approach strips the city of local control and leads to outcomes that frustrate neighbors and undermine thoughtful planning.

We are seeing this play out in real time behind the Santa Barbara Mission and on Grand Avenue on the Riviera.

When local rules make housing impossible, Sacramento steps in and Santa Barbara loses its voice.

This did not happen overnight, and it did not happen by accident. It is the result of layering well-intentioned policies without stopping to ask whether the system still functions as a whole.

Instead of fixing the foundation, we continue to add new restrictions on top of more restrictions until the entire thing collapses.

People who live with the consequences of these policies every day should have a seat at the table alongside those who write them.

Before we even address the new rent regulations that freeze rents as of Dec. 15, 2025, the city’s own data tell us the underlying system is already broken.

The draft study is open for public comment until March 1, but comments alone are not enough.

This moment calls for leadership and accountability. It calls for a serious reset in how Santa Barbara approaches housing and building.

We should be asking why a system that affects every resident was allowed to become so unworkable, and how we correct it before more damage is done.

One constructive step would be to convene a working group that reflects reality on the ground. That means including city staff and elected officials, but also builders, architects, lenders, property owners and residents who are directly impacted by these rules.

People who live with the consequences of these policies every day should have a seat at the table alongside those who write them.

Santa Barbara is running out of time. Nearly every city and county around us is moving to simplify and streamline permitting to encourage housing that fits their community.

Without action, we risk becoming victims of more builder’s remedy projects, and suffer the consequences. Meanwhile, we continue to double down on policies and more policies that the city’s own report admits do not work.

If you care about affordable housing, adaptive reuse or simply the ability to build or remodel a home in Santa Barbara, I encourage you to read this study and submit your comments before March 1.

More important, I encourage you to demand a better approach. One that replaces inertia with action and replaces failed policy with practical solutions that actually lead to housing getting built.

Monte Wilson is a Santa Barbara business and community leader with more than 30 years of corporate executive experience. He and his wife own a State Street business and co-chair Rally4Kids, benefiting the United Boys & Girls Clubs of Santa Barbara County, and he previously served as board president of the MAD Academy at Santa Barbara High School. He’s also an active mentor and investor supporting Santa Barbara’s emerging entrepreneurs. The opinions expressed are his own.