California’s housing crisis has become one of the most pressing issues of today. From Los Angeles to San Diego, demand has far outpaced supply, driving rents higher and pushing essential workers farther away from the communities they serve. For Elizabeth Carmichael, founder of THE LAB SD (Living Adaptive Build – Sustainable Developments), the solution lies in integrating affordable housing directly into larger developments, while rethinking the design of urban living itself.

“In the past, affordable housing in the United States was often clustered together into isolated ‘projects,’” Carmichael explains. “That created stigma and segregation. Today, we’re designing mixed-income buildings where affordable units are seamlessly integrated into larger developments. For instance, when 10% or more of the apartments in a 100-unit building are deed-restricted affordable, residents live side by side, without barriers. That’s how we build inclusive communities.”

California has embraced what’s known as inclusionary affordable housing, a policy that requires developers to incorporate affordable units into new projects. State law pairs this mandate with incentives: developers who meet affordability requirements often receive density bonuses, allowing them to build more units overall.

“The idea is simple,” Carmichael says. “We need more housing across the board. By offering density bonuses, the state makes it possible for developers to meet affordability goals while still making projects financially viable.”