Developer compares housing costs in Paradise, Chico, and Oroville

The City Council meeting in Chico on June 3, 2025, highlighted significant discussions regarding housing development and associated costs in the region. A key focus was a comparative analysis of housing construction in Chico, Paradise, and Oroville, presented by a local builder. The builder noted that the cost of a complete turnkey lot in Chico is $136,000 higher than in both Paradise and Oroville, attributing the delays in Chico's housing projects to more complex regulations and processes.

The builder's ongoing experiment involves constructing similar homes in the three towns to evaluate differences in land costs, fees, and overall build expenses. He emphasized that the housing market in Chico is notably more expensive, which could impact future sales and development strategies.

Additionally, David Welch, a council member, contributed to the discussion by suggesting a reevaluation of impact fees associated with housing development. He proposed minimizing fees for homes built on existing streets that do not require extensive new infrastructure, while increasing fees for developments that necessitate significant new construction. Welch also reminded the council of the community's previous rejection of a large-scale development project, indicating a preference for more appropriate housing solutions that align with the residents' desires.

The meeting underscored the ongoing challenges and considerations in addressing Chico's housing needs, particularly in light of California's broader housing crisis, which includes a high homeless population and a significant shortage of dwellings. The council's discussions reflect a growing awareness of the need for balanced development that meets community expectations while addressing the pressing demand for housing.