California's Growing Housing Imbalance

Robert Steuteville looks at a recent report on the Golden State's supply and demand imbalance in the housing market. It's not what the The Wall Street Journal has led you to believe.

2 minute read

May 2, 2012, 11:00 AM PDT

By Jonathan Nettler @nettsj


Despite recent pieces in The Wall Street Journal decrying the efforts of California's public officials and planners to implement smart growth initiatives throughout the state, Steuteville looks to the findings of a recent study written by University of Utah researcher Arthur C. Nelson, and published by the Urban Land Institute, and argues that the state's biggest housing challenges are exactly the opposite of the crisis described by Joel Kotkin and Wendell Cox.

Nelson's study, titled "The New California Dream: How Demographic and Economic Changes May Shape the Housing Market", reports that demographic and market changes are producing a growing imbalance between the supply and demand for suburban style single-family and transit-accessible housing. However, contrary to the picture painted by the Journal, the unmet demand is on the transit-accessible side, and the over-supply is in conventional lot single-family homes.

According to Steuteville, "California could build nothing more than transit-oriented development in the next quarter century and still not meet demand. 'The bottom line is that as many as 9 million households would like the option to live in locations served by public transit, but today only about 1.2 million California households can claim to have it,'" the report explains.

Steuteville continues, "Another major finding focuses on the supply of conventional-lot single family housing...Even if no new suburban-style single-family housing is built, there will still be an oversupply of more than two million of these kinds of units in California in 2035...In California's four largest metropolitan planning areas (MPOs), which include a majority of the state's population, current supply is 84 percent higher than projected demand for conventional single houses in 2035, 23 years from now."

Tuesday, May 1, 2012 in Better Cities & Towns

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Concrete Brutalism building with slanted walls and light visible through an atrium.

What ‘The Brutalist’ Teaches Us About Modern Cities

How architecture and urban landscapes reflect the trauma and dysfunction of the post-war experience.

February 28, 2025 - Justin Hollander

Complete Street

‘Complete Streets’ Webpage Deleted in Federal Purge

Basic resources and information on building bike lanes and sidewalks, formerly housed on the government’s Complete Streets website, are now gone.

February 27, 2025 - Streetsblog USA

Green electric Volkswagen van against a beach backdrop.

The VW Bus is Back — Now as an Electric Minivan

Volkswagen’s ID. Buzz reimagines its iconic Bus as a fully electric minivan, blending retro design with modern technology, a 231-mile range, and practical versatility to offer a stylish yet functional EV for the future.

March 3, 2025 - ABC 7 Eyewitness News

View of mountains with large shrubs in foreground in Altadena, California.

Healing Through Parks: Altadena’s Path to Recovery After the Eaton Fire

In the wake of the Eaton Fire, Altadena is uniting to restore Loma Alta Park, creating a renewed space for recreation, community gathering, and resilience.

March 9 - Pasadena NOw

Aerial view of single-family homes with swimming pools in San Diego, California.

San Diego to Rescind Multi-Unit ADU Rule

The city wants to close a loophole that allowed developers to build apartment buildings on single-family lots as ADUs.

March 9 - Axios

Close-up of row of electric cars plugged into chargers at outdoor station.

Electric Vehicles for All? Study Finds Disparities in Access and Incentives

A new UCLA study finds that while California has made progress in electric vehicle adoption, disadvantaged communities remain underserved in EV incentives, ownership, and charging access, requiring targeted policy changes to advance equity.

March 9 - UCLA Luskin Center for Innovation