Democrat Gov. Gavin Newsom’s (CA) ambitious housing agenda has hit a significant roadblock, falling two-thirds short of the targets he set in 2019 as homelessness spirals out of control. Despite billions in state funding and a flood of regulations meant to tackle the crisis, Newsom’s failure to deliver on his promises is apparent. Meanwhile, the number of people living on the streets has surged, raising serious questions about the governor’s ability to address the root causes of the state’s housing and homelessness crisis. His administration's inability to meet its goals is a stark reminder that significant government initiatives often struggle to produce real solutions, leaving the state's most vulnerable citizens with little more than empty promises.
The San Francisco Chronicle reported that “California is wildly off track to meet Newsom’s 2025 housing goal,” which he vowed to build 3.5 million homes. However, only 1.1 million houses have been completed during his term. Between 2019 and 2023, only 650,000 new homes were permitted. Although the number has increased from 70,000 in 2018 to 115,000 in 2023, Newsom’s plan has built just 110,000 homes annually.
Since taking office, Newsom has signed dozens of laws that aim to streamline the construction of new housing, approved billions of dollars for affordable housing through the state budget, and created a new enforcement unit within his housing agency to crack down on cities that stonewall new housing. The data shows the state is far short of the roughly 500,000 that would need to be approved each year to meet Newsom’s initial goal. In 2022, when he was running for reelection, Newsom walked back the 3.5 million number when his administration set a new, less ambitious target: Cities would need to plan for 2.5 million new homes by 2030. So far, cities and counties have planned for 1.1 million new homes through their housing plans during Newsom’s tenure.
Meanwhile, housing costs in California are rising. In 2017 the average home price was $546,000; now, the median is roughly $868,000.
Newsom has also dropped the ball on the electric vehicle (EV) policy, in which his proposed ban on the sale of gas-powered cars, which takes effect in 2035, has seen a shortfall. Its sales growth has stalled as President-elect Donald Trump vows to eliminate federal EV tax credit subsidies for buyers and implement tariffs on cars made in Mexico. As a result, the prices of automobiles increased.
Thirty-five percent of new cars sold must be zero-emission. To make that goal, EV sales would have to increase 33 percent. However, Toyota North America Chief Operating Officer Jack Hollis said the “demand is not there.”
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