The ongoing challenge of housing supply in California often comes up in conversations with our clients, especially those navigating transitions or considering their next right-sized move. The state’s ambitious plan for over 300,000 new homes each year has been hard to realize, with actual approvals falling short—reminding us all that well-intended reforms only go so far if they aren’t practical on the ground. Measures like lot splits and church-land legislation have produced limited outcomes so far, with just 94 permitted units statewide. Labor requirements and below-market mandates, while important, can add up to $100,000 per home and complicate financing—something we see impact local projects here in San Diego and Riverside County. On the flip side, simpler solutions are showing real promise. Accessory dwelling units (ADUs), for example, now account for over 20,000 permits a year—about a quarter of California’s total new housing approvals. Density bonus programs are even more significant, with nearly 50,000 units approved yearly and supporting close to half of all new multifamily homes statewide. For those considering downsizing, inheriting a property, or leveraging Prop 19, understanding how these trends impact local inventory is key to making your smartest move.
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