Based on California's continued population growth, the State Department of Housing and Community Development (HCD) estimates that the state needs upwards of 200,000 housing units per year in order to maintain a healthy housing sector. Currently, the market is producing less than half of that amount. This scarcity has driven California's housing costs to be the highest in the nation, prohibiting occupations like teachers, nurses, public safety officers and younger professionals the ability to afford owning a home, essential for building a stronger and vibrant economy.
California law requires each city and county to plan for their 'fair share' of the State's housing growth needs. Based on economic and demographic forecasts, the State has determined that the Southern California Association of Governments (SCAG) region needs to accommodate 1,341,827 housing units between 2021 and 2029 to meet housing demand.