POLITICS

California Housing Shortfall Grows Under Governor Gavin Newsom

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Sources: 9

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Right 67%

Sources: 9

California, Governor Gavin Newsom’s housing production has fallen short of pledged targets, with state figures showing 737,295 privately owned housing units built under the 3.5 million-by-2025 pledge, roughly one-fifth of the goal. Newsom revised the objective to 2.5 million by 2030 in 2022; production slowed further in early 2025, with the first eight months yielding nearly 16,000 fewer units than in 2022. State officials cited permitting delays and costs. Analysts cite regulatory hurdles and inadequate incentives. Separately, New Jersey announced more than $35 million in FY2026 affordable housing awards funding 23 developments and $10 million to Habitat for Humanity. Based on 6 articles reviewed and supporting research.

Prepared by Lauren Mitchell and reviewed by editorial team.

Timeline of Events

2018: Gavin Newsom campaigns on and pledges 3.5 million new housing units by 2025.
2022: Newsom publically revises the target to 2.5 million units by 2030, calling earlier goal a stretch.
Early 2025: Census-related reporting indicates 737,295 new privately owned units under the original timeline and production slower than 2022.
FY2026: New Jersey announces over $35 million for 23 affordable housing projects and $10 million to Habitat for Humanity.
Late 2025: Multiple outlets publish analyses contrasting California's shortfall with New Jersey's targeted funding.