Lyssa-Noel Frater
Elizabeth Carmichael – Founder of THE LAB SD
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.”
THE LAB SD
In San Diego, the rules go a step further. Developments built within a half-mile of major transit hubs can take advantage of significantly increased Floor Area Ratios (FARs), the measure of how much building can be constructed on a given lot. In some areas, FAR has more than doubled, allowing for taller, denser housing projects. Carmichael further says, “This not only addresses the housing shortage, but also supports climate goals by encouraging transit use and reducing dependence on cars.”
One trend emerging from these policies is the rise of micro units. With zoning incentives, these smaller units can sometimes double the number of apartments on a site. “I’m working on projects now where all the apartments are between 300 and 400 square feet,” Carmichael shares. “They’re efficient, modern studios and one-bedrooms designed for today’s lifestyle. For a lot of people, especially younger generations, living small is not a burden. It’s part of a minimalist mindset. And it works best especially for local workforce such as teachers, nurses, and firefighters who have had to move further away from where they work.”
Micro units also help balance the economic equation, as per Carmichael. Smaller units mean lower rents, providing much-needed relief in markets. THE LAB SD founder further states, “It makes urban living accessible again, and it fits with how people live today, with less clutter, more efficiency, and more connection to the city around them.”
For Carmichael, housing policy is inseparable from the larger question of how cities support human health and community resilience. THE LAB SD’s projects often include promenades, wider sidewalks, small markets offering fresh food, and new public spaces.
“These changes don’t just create more units; they create healthier cities,” she says. “If people can walk to a local market for fresh food, if they have wider sidewalks with added greenery and shade, more parks and small plazas, they’re healthier and more connected. It also creates jobs and opportunities for small businesses.”
Walking through the streets further helps residents orient themselves and engage with the city. “We even include way-finding signage that reminds people it’s a 10-minute walk to the beach or a 20-minute bus ride to a park,” says Carmichael. “I believe this will shift people’s mindset away from cars and toward walking, biking, and transit.”
While inclusionary housing policies are spreading, there have been some pushbacks, Carmichael notes. Concerns about density, parking shortages, and changes to neighborhood character are common. “Some people worry that new residents without parking will flood nearby streets,” she acknowledges. “But generationally, we’re already seeing a shift. Millennials and Gen Z are less interested in owning cars. When you combine that with stronger transit systems, the parking issue becomes less of a concern.”
The bigger challenge, she says, is cultural: helping communities see density as an asset. “We have to change the narrative,” she affirms. “More housing means more vibrant neighborhoods, more walkability, and more opportunities for everyone to live close to where they work.”
Carmichael sees California’s housing strategies as more than just a response to shortages; they’re a chance to rethink urban life. “This isn’t just about lowering rent,” she says. “It’s about creating healthier, more inclusive cities. By integrating affordable housing into larger developments, building smaller and more efficient units, and prioritizing walkability and green space, we can create cities that work for everyone.”
For THE LAB SD, that vision is already taking shape. Whether it’s micro units along transit corridors or mixed-income apartments that erase old stigmas, Carmichael is determined to build housing that doesn’t just shelter people but strengthens communities. “At the end of the day,” she says, “housing is where everything starts. If people have a place to live that they can afford, close to work, with access to green space and fresh food, the whole city becomes healthier. That’s the future we’re working toward.”