California Builds 692,000 Homes Since 2019 Yet Lags Annual Need

California is building more homes than it did several years ago—constructing more than 692,000 homes since 2019—but annual production remains well below the state’s housing needs, according to testimony before the independent Little Hoover Commission reported by KALW 91.7.

The Little Hoover Commission, which studies how California’s state government operates, has been holding a series of oversight hearings examining why residential construction has not kept pace with demand despite more than $18 billion in state housing commitments over the past eight years.

110,000 Units Built Annually Against a 180,000-Unit Target

At the commission’s most recent hearing, California Department of Housing and Community Development Director Gustavo Velasquez said years of state investment are showing measurable progress.

“California’s focus and investments in housing are starting to show measures in progress,” Velasquez said. “More than 692,000 homes have been built since 2019.”

However, Jason Rhine of the League of California Cities told commissioners that statewide homebuilding remains plateaued below the state’s annual target.

“We’re locked in about 110,000 units a year,” Rhine said. “That’s about what we’re producing every year, and we know that’s well below the 180 that we need.”

Call for Flexibility Beyond Big-City Rules

County officials testified that part of the bottleneck stems from state housing laws written primarily for large urban cores rather than counties that span suburban and rural communities. Placer County Supervisor Bonnie Gore noted that her county stretches from Sacramento’s suburbs to rural Lake Tahoe.

“I think it’s important that we acknowledge that one-size-fits-all solutions don’t always work,” Gore said. “Communities need flexibility.”

The Little Hoover Commission will compile the hearing testimony into formal policy recommendations for the governor and the California Legislature once it completes its housing study.