The Housing Deficit is Worst in California — Almost a Million Homes Short

California’s housing production has long lagged behind demand.

This chronic shortage has only gotten worse — and more pervasive — in recent years.

While the nation as a whole fell short 1.65 million housing units in 2012, that number has more than doubled to 3.79 million units in 2019. As of 2019, California is 980,000 housing units short of meeting its residents’ housing needs, according to a recent report by Up for Growth.

In 2012, the nation’s housing underproduction appeared concentrated along the coasts, especially the Southwestern coast. Now, the deficit has deepened and sprawled out to nearly every state, affecting urban, suburban and rural areas alike.

Housing underproduction worsened in 47 states. Six states that did not suffer underproduction in 2012 now do. From 2012 to 2019, the housing deficit became more severe in 230 metropolitan areas. Nearly 75% of U.S. metro areas are experiencing worsening levels of housing underproduction. Only 25 regions saw their housing deficit shrink.

By the numbers, California underproduced:

389,000 units in Los Angeles-Long Beach-Anaheim, or 8.3% of the total housing stock — the #1 ranking metro area in the U.S. for underproduction;
153,000 units in Riverside-San Bernardino-Ontario, or 9.7% of the total housing stock — the #5 ranking metro area in the U.S.;
114,000 units in San Francisco-Oakland-Berkeley, or 6.2% of the total housing stock — the #7 ranking metro area in the U.S.;
68,000 units in San Diego-Chula Vista-Carlsbad, or 5.5% of the total housing stock — the #17 ranking metro area in the U.S.;
48,000 units in San Jose-Sunnyvale-Santa Clara, or 6.7% of the total housing stock — the #21 ranking metro area in the U.S.;
46,000 units in Sacramento-Roseville-Folsom, or 5.0% of the total housing stock — the #22 ranking metro area in the U.S.; and
17,000 units in Fresno, or 5.1% of the total housing stock — the #34 ranking metro area in the U.S.