Most California Cities Fail State Housing Production Targets

Most California cities and counties are failing to meet state-mandated housing production targets, particularly for low-income households. Data from the California Department of Housing and Community Development shows that less than one-third of jurisdictions are on track for market-rate housing, while fewer than 6% are meeting goals for very low-income units. Only five jurisdictions—Placerville and unincorporated areas of Plumas, Napa, Yolo, and Mono counties—are permitting at a pace to hit all four affordability targets.

While the administration of Governor Gavin Newsom set a planning target of nearly 2.5 million units over eight years, annual construction remains just above 100,000 homes. In response to these shortfalls, a 2017 streamlining law now requires jurisdictions that missed their mid-term planning marks to fast-track certain projects. This includes nearly all Southern California jurisdictions that failed their targets.

The failure has sparked a dispute over accountability. The League of California Cities argues that municipal governments cannot force private developers to build. Conversely, YIMBY Action claims cities fail to manage the zoning, fees, and permitting processes they do control. Developers have noted that high interest rates, construction costs, and state-mandated wage requirements often make these projects financially infeasible. To address the lack of public subsidies for affordable housing, advocates are seeking a new $11.25 billion state bond in November.