California’s housing construction activity was up in 2016, but it failed to keep pace with the state’s population.
The Los Angeles Times
, using California Department of Finance data, reported that the state’s housing stock grew by 88,562 units last year as the population expanded by 334,578 residents—a ratio of one new home for every 3.78 new residents. California’s population reached 39.5 million last year.
Within Los Angeles and Orange counties, the balance between construction and population growth was better measured: Los Angeles County added one housing unit for every 2.52 new residents, while the Orange County rate was 2.79. This is a significant improvement since 2010, when Los Angeles County has added one new housing unit for every 4.99 new residents while Orange County added a unit for every 5.26 new residents. But new that’s not to say the new homes were affordable: as of February, home prices across the two counties saw a 5.11 percent year-over-year increase, according to the Case-Shiller index.