🏘️ America’s Housing Shortage — and What It Means for Orange County

Why 2023 Mattered

Despite a pandemic-era construction surge, the U.S. housing shortage deepened in 2023—placing an outsized burden on California, and especially Southern California.

🏠 Key National Stats (2023)

• Housing shortfall: Reached 4.7 million homes, up 159,000 from 2022
• New homes built: 1.4 million
• New households formed: 1.8 million
• Families “doubling up”: 8.1 million households lived with non-relatives

➡️ While new construction helped slow the deficit’s growth, it didn’t reverse the trend.

👥 Who’s Feeling It Most? Millennials.

Breakdown of households doubling up by generation:

• Millennials: 38%
• Gen Z: 29%
• Gen X: 17%
• Boomers and older: 16%

🌆 The 5 U.S. Cities with the Deepest Shortages

⚠️ Four out of five of these metros are in California.

📍 Spotlight on Orange County & Southern California

🔹 The Affordable Housing Crisis in Orange County

• 130,715 low-income renters lacked access to affordable housing (2023)
• Only 5,466 shelter beds available countywide
• 64% of low-income homeowners were cost-burdened
• Rental Prices:
  • Irvine: ~$2,500/month for a 1-bedroom
  • Anaheim: ~$2,000/month for a 1-bedroom

🔹 Ownership & Permitting Trends

• Escrow closings declined ~20% from 2022
• Homeownership rate: 58.1% in OC (vs. 55.5% statewide)
• From 2018–2023, OC permitted ~41,700 homes:
  • 85% were for above-moderate-income households
  • Only 6% very-low-income, 5% low-income

Anaheim’s Housing Snapshot:

• Zoned 17,453 homes
• Only 6,164 targeted low-income families
• In 2023: 965 permits issued, 534 homes built

🔥 Additional Pressure from Wildfires

In 2023, over 6,000 homes were lost to wildfires in Los Angeles County alone. Rebuilding these homes adds further strain to already stretched construction pipelines and housing inventories.

📉 The Affordability Cliff

• Mid-tier home monthly cost: ~$5,900
• Bottom-tier home cost: ~$3,500
• Both figures represent 80–90% increases since early 2020

Only 16% of California residents can afford a median-priced home. Major obstacles include restrictive zoning, slow permitting, and limited land for affordable development.

🧭 Final Thought

This isn’t just a housing deficit—it’s a structural imbalance that’s reshaping how Americans live. In Southern California, the ripple effects are clear: rising rents, declining affordability, and shrinking access to homeownership are becoming the norm for too many households.

Addressing these challenges will require coordinated efforts across policy, planning, and community investment.

💬 What changes are you seeing in your community? Let’s start a conversation.

Best regards,
Scott Woodburn
Realtor® | Zillow Premier Agent
Real Technologies Broker LLC
949‑433‑7803
wswoodburn@gmail.com
ScottWoodburn.com
California Dept Of Real Estate
License Number 01185194