California has 7th-slowest housing creation in US

California seems unable to make any significant dent in its housing challenges.

My trusty spreadsheet analyzed fresh Census Bureau housing data, examining changes in supply and costs for occupied housing – both ownership and rental living arrangements – across the 50 states and the District of Columbia.

By comparing 2024 statistics to those of 2019, it becomes clear that California’s housing creation lags behind the national pace and is insufficient to alleviate the steep financial burdens of shelter.

Yes, California housing numbers have grown in five years. The increase of 639,800 occupied units was the third-largest expansion among states. However, that added housing accounted for only 6% of the U.S.’s overall growth of 9.9 million. Measuring changes in living arrangements tracks construction patterns, vacancy rates and how properties are used.

And where was the most housing added? The state’s economic archrivals: Texas added 1.5 million occupied units, and Florida is up 1.2 million.

Do not forget the enormity of California’s housing market.

Last year, it had 13.8 million occupied housing units – the highest among the states and 10% of the nation’s 132.7 million units. Texas was tops at 11.4 million, followed by Florida at 9.1 million.

To understand California’s housing headaches, consider the additions of units as a slice of the statewide total. It adds up to a 5% California growth rate over five years – the seventh-slowest among the states and well below the nation’s 8% pace.

The top growth rates were found in Utah and Florida, at 16%, followed by Texas and Idaho, at 15%.

How much?

Weak housing creation doesn’t help the pricing problems.

Ponder one yardstick of these budget-busting expenses – combining census benchmarks of monthly costs for both owning and renting.

According to this math, the typical Californian in various living arrangements paid $2,280 a month last year. That’s the second-highest nationally and 70% above the $1,340 U.S. cost.

Only D.C. was pricer at $2,610. Texas ranked No. 18 at $1,540, and Florida ranked No. 17 at $1,550.

The rub for California’s stressed household budgets is that housing costs have made little progress on a national scale since 2019.

California housing prices increased 23% over the past five years. That’s steep, but also in line with the nation’s cost growth. The Golden State’s housing inflation ranked 31st highest among the states.

Yet swift housing creation is no guarantee of moderating the financial pain.

The nation’s biggest cost surges were found in some of the fast-growing states, where population growth outpaced housing construction.

So, Florida’s costs jumped 43% in five years, Colorado rose 33%, and Utah and Texas increased by 32%.

New owners

Let’s dig into housing’s five-year growth, beginning with an overview of Golden State homes owned by its residents.

California added 483,100 ownership households since 2019, the third-largest bump among the states. Yet that’s only 6% of the nation’s 7.9 million growth. Note that California has 9% of U.S. homeowners.

And where were the most owners created between 2019 and 2024? Florida, up 982,600, followed by Texas with 955,600.

Again, California’s expansion rate was paltry – seventh-lowest at 7%, well below the nation’s 10% growth in ownership.

The highest growth rate was Florida’s 19%. Texas was No. 4 at 15%.

New tenants

California’s renting households grew even more slowly.

The 156,700 increase over five years was the third-largest among the states, however, that gain accounted for only 8% of the nation’s 2 million additional tenants. California is home to 13% of the nation’s renters.

Texas added the most tenants since 2019, at 509,100 households, followed by Florida at 253,300. Ten states actually shed renters, led by Michigan’s 32,200 dip and Ohio’s 29,100.

It’s no surprise that the California expansion pace was meager, with just 3% growth over five years. That ranked 31st among the states and trailed the national rate of 5%.

The hottest spot for renters was Utah, up 20%. Texas was No. 4, up 13%. Florida was No. 7 at 9%.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com