California’s housing shortage has reached critical levels, with demand far exceeding available units in major cities like Los Angeles, according to a new report by Zillow.
As of 2023, Los Angeles had approximately 114,244 vacant homes for rent or sale, while the number of households sharing a residence with non-family members reached 452,994. That amounts to a shortfall of nearly 338,750 homes—indicating demand is nearly four times greater than supply.
Compared to the previous year, the supply-demand gap has widened. In 2022, LA had about 113,243 available units and 449,971 co-living households.
Other California cities show similar patterns. San Francisco had about 51,356 vacant homes and 191,346 shared households, a gap of nearly 140,000 units—the second-largest in the state and third nationwide.
San Diego ranked fourth with 26,824 available homes but 122,655 shared households, while San Jose ranked fifth with a deficit of 56,378 units.
Nationwide, the situation remains severe. Only 3.4 million vacant homes were available, while about 8.1 million households shared housing with non-family members. That’s a nationwide shortfall of 4.7 million homes—up 159,000 from the previous year.
Zillow noted that this imbalance forces many families to continue sharing housing. While new home construction temporarily increased during the pandemic, it did not eliminate the long-standing shortfall. In fact, while the housing gap shrank slightly in 2022, it grew again in 2023.
Experts say aggressive action is needed. They emphasize the importance of expanding housing supply, easing regulatory barriers, and increasing support for low-income and public housing.
In California, high construction costs, complex permitting, and limited land availability continue to hinder development. Younger generations, especially those just becoming financially independent, face significant challenges from high prices, rental costs, and loan hurdles.
The Zillow data showed millennials made up the largest share of co-living households at 38%, followed by Gen Z at 29%, Gen X at 17%, and baby boomers at 16%.
To respond to the housing crisis, the California state government is moving to establish a new agency dedicated solely to housing.
Earlier this year, Governor Gavin Newsom proposed separating the existing Business, Consumer Services and Housing Agency to form a standalone housing department. The California State Legislature officially endorsed the plan by July 4, moving forward with the agency’s creation.
Ray Pearl, executive director of the California Housing Consortium, said the new agency marks a major policy shift. “Creating a cabinet-level housing agency elevates the issue to a top policy priority,” Pearl said, adding that the move could improve the effectiveness of housing programs and budget allocation.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
