Housing shortage scrutiny: Sacramento region sees big drop in homes being built
SACRAMENTO – More than 45,000 new homes are needed in the Sacramento region by the end of the decade.
But now a new survey shows construction is falling way behind.
Housing advocates say more homes need to be built to meet the growing demand.
"There is an extreme need," said Valerie Feldman, a board member with the Sacramento Housing Alliance.
Last year, there was a 33 percent drop in the number of new housing units built.
"It's hard to build in a climate like today when mortgage rates doubled," said Ryan Lundquist, an appraiser.
So just how much more housing is needed?
Under California state requirements, Sacramento should approve nearly 5,700 new homes each year.
But in 2022, less than 2,300 were actually built. That's only 40 percent of what is needed.
"It's a tough environment to meet numbers," Lundquist said.
A housing analyst, Lundquist says the shortage is affecting the marketplace.
"I think people have to compete with other buyers, there's more multiple offers right now," Lundquist said.
And affordable housing advocates say it contributes to the homeless crisis.
"In order to move people out of homelessness, you have to have a place for them to move to," Feldman said.
The state can take legal action against cities if they don't approve enough new housing.
California Attorney General Rob Bonta filed suit against Huntington Beach last month – and has sent a warning letter to Elk Grove.
"Act in good faith, follow the law, and do your part to increase the housing supply," Bonta said in a press conference announcing the lawsuit against Huntington Beach.
"It's encouraging to see them use those resources in a way that will help people who are in need of housing," Feldman said.
Housing advocates say the solution is for cities to use zoning rules and lower permit fees to encourage more home construction.
"We want them to look at all the possible tools at their disposal to increase those numbers," Feldman said.
The City of Sacramento has launched several efforts to boost housing construction, including creating a web-based land inventory and offering free plans for people wanting to build backyard granny flats.
