California’s housing growth increases to its highest level since 2008

New data released by the Department of Finance shows that California's housing market saw an increase in growth in 2022.

By City Monitor Staff

California’s housing market saw an uptick in growth in 2022, according to new data released by the Department of Finance. The state-wide housing market grew by 0.85%, the highest level since 2008, adding a total of 123,350 housing units on net, including 20,683 accessory dwelling units (ADUs).

california housing market
Residential homes surrounded by scaffolding during their construction phase in Riverside, California. (Photo by Orange Grove/Shutterstock)

The construction of new housing units accounted for 116,683 of the total housing growth, with 63,423 single-family housing units, 51,787 multi-family housing units, and 1,473 mobile homes built. Of the new housing units built, densely populated urban areas focused on constructing multi-family housing. Los Angeles led the state in multi-family unit construction, gaining 12,074 units, followed by San Diego (4,568), Oakland (3,880) and San Francisco (2,573).

Highest housing growth tops 2.3%

The highest growth in housing occurred in Yuba County, which saw a growth rate of 2.3%, followed by Placer, Butte, Madera, San Joaquin, Yolo, Alameda, San Benito, Merced, and Imperial. Twelve counties had housing growth rates at or above 1.0%, while Mariposa was the only county that lost housing due to a wildfire in 2022.

Looking at the cities that saw the largest net housing gains, Los Angeles came out on top, adding 19,556 units, followed by San Diego (7,034), Oakland (4,005), San Francisco (2,823) and Unincorporated Riverside County (2,106). Meanwhile, cities that focused on single-family housing construction tended to be located further inland and were more suburban. Cities with high percentages of single-family growth included Roseville (100% single family), Santa Clarita (100% single family), Fresno (91.7% single family) and Irvine (71% single family).

Some cities see population decline

Despite the overall growth in housing, some 356 cities saw a decline in population, while only 125 gained population and one city experienced no change. Of the ten largest cities in California, only Sacramento, Bakersfield and Fresno saw population growth, with Sacramento experiencing the largest percentage gain of 0.2% (1,203 residents).

The production of ADUs increased by 60.6%, with the state adding 20,638 units in 2022. This represents a significant increase in the number of ADUs, highlighting their growing popularity as an affordable housing option in California.

[Read more: LA Mayor Karen Bass vows to significantly expand homelessness project]

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