Cities decline to accommodate affordable housing because the property tax it generates is inadequate to cover the cost of services the residents demand. Instead, cities pursue the sales tax cash register of retail businesses. Industry, unlike local government, has a regional orientation. These industries don't affect just a single town. No one is suggesting that land-use decisions should be transferred to the state government.
Land use is inherently a local decision.
Nevertheless, California should provide guidelines on how to plan growth. To make these guidelines meaningful, state government should provide incentives to regions that intelligently plan their growth by focusing development into existing communities. Cities which do not do so should be told not to count on the state to finance public investments. Maryland provides an example. The state passed a Rural Legacy bond to make open space and farmland preservation money available to smart growth counties.