Heritage Foundation economist Peter St. Onge argued Gov. Newsom is embracing housing reforms long championed by free-market economists, but questions whether California can overcome its regulatory barriers.
California Gov. Gavin Newsom is making affordability a focal point of his agenda as the potential 2028 Democratic presidential contender moves to tackle housing costs — seizing on an issue that hurt Democrats politically while converging with pieces of President Donald Trump’s deregulatory housing agenda before the midterms.
Newsom’s biggest recent housing reforms in California came before Trump’s March 2026 executive order on regulatory barriers, but the two are pushing some of the same ideas, including faster approvals, fewer regulatory hurdles and more housing construction.
"This is a pattern that we've seen a couple times with Democrats, where they will fight tooth and nail against economic common sense, but if it starts pulling the wrong way for them, then they'll come around to reality. So you know he's focusing on a lot of things that Trump has been championing," economist Peter St. Onge told Fox News Digital. "…These are things that the free-market economists have been championing for decades."
St. Onge said while Newsom’s "transformation has been certainly striking," California’s struggle to rebuild after the Palisades fire underscores whether that shift will translate into results.
THE KEY STRATEGY RED STATES ARE USING TO LOWER HOUSING COSTS REVEALED
California Gov. Gavin Newsom and President Donald Trump. The Trump administration this week announced a pause on more than $10 billion in childcare funds to five blue states. (Michael M. Santiago/Getty Images (left); Tasos Katopodis/Getty Images (right))
"We saw this with the Palisades fires where thousands of houses were burned. And people go through… and look at exactly how many houses are under construction and it’s pretty close to zero. The regulatory blockade is insurmountable," said St. Onge.
Newsom has embraced some of the same supply-side housing tools Trump has pushed nationally, including faster approvals, fewer regulatory barriers and efforts to reduce construction costs. California enacted its major recent reforms in June 2025, before Trump issued a housing-specific executive order targeting regulatory barriers in March 2026.
The push comes after Democrats notched big wins in 2025 by campaigning on affordability, reclaiming ground on an issue that had worked in Trump’s favor in 2024.
The Golden State governor signed a housing package in June 2025 to exempt certain projects from California Environmental Quality Act (CEQA) and streamline environmental review for qualifying housing and infrastructure development. Some Coastal Commission housing appeals were limited and new residential building standards through 2031 were placed on hold.
Newsom followed those changes in July by signing another housing package aimed at streamlining affordable-housing financing and project reviews.
"We can’t speak to the Trump administration’s approach, because he hasn’t done anything. Trump’s failed economic policies and tariffs (also called taxes on Americans) have increased prices and shut down supply chains – slowing building across the country," Newsom director of communications Tara Gallegos told Fox News Digital when approached for comment.
"In contrast, in California, Governor Newsom has enacted historic reforms in California to boost affordability, accelerate housing production, and hold local governments accountable for planning and building the housing their communities need," Gallegos added.
$104,200 SALARY IN ORANGE COUNTY, CALIFORNIA CONSIDERED 'LOW-INCOME' BY STATE OFFICIALS
