California's Housing Market Faces Challenges Despite Increased Homebuilding
California has added 677,000 housing units over the past six years, yet the state's housing market remains tight. According to the Public Policy Institute of California, the state only gained 39,000 residents during this period, suggesting that the increase in housing should have eased market pressures. However, vacancy rates have decreased, with owner vacancy falling from 1.2% to 0.8% and rental vacancy at 4.3%, below the national average. The demographic shift towards smaller households is a significant factor, as more people are living alone or in smaller groups, increasing the demand for housing. The aging population, with a growing percentage of residents over 65, further contributes to this trend. 
