California Growth Report: Housing Up, Population Down

Good and bad news can be found in the most recent demographic report from the California Department of Finance. The population dropped by nearly 140,000 last year while housing grew at the highest rate in 14 years.

2 minute read

May 4, 2023, 10:00 AM PDT

By Irvin Dawid


California Houses

Frantik at en.wikipedia / Wikimedia Commons

“The total population dropped to an estimated 38.9 million at the start of 2023, down from 39.1 million at the start of 2022, a 0.3% decline,” reports Sophia Bollag for the San Francisco Chronicle on May 1.

“The 0.35-percent population decline for 2022, roughly 138,400 persons, marks a slowdown compared to the recent decline during the COVID-19 Pandemic,” states the 20-page report [pdf] released on May 1 by the demographic unit of the state Department of Finance.

Between 2021 and 2022, California’s population decreased 0.53 percent or 207,800 persons, due mainly to sharp declines in natural increase and foreign immigration.

All but 12 of the state's 58 counties continued to lose population. Among the 10 most populous counties, Riverside (#4), San Bernardino (#5), and Fresno (#10) saw population increases.

“Among California’s 10 largest cities, just three grew: Sacramento, Fresno and Bakersfield, with Sacramento seeing the largest increase at 0.2%,” adds Bollag. Anaheim (#10) saw the largest percentage drop, 2.2%, followed by Los Angeles (#1) at 1%.

On the housing front, the data was more positive, according to the state report.

Over the same [12-month] period [ending on Jan. 1, 2023], statewide housing growth increased to 0.85 percent – its highest level since 2008. California added 123,350 housing units on net, including 20,683 accessory dwelling units (ADUs), to bring total housing in the state to 14,707,698 units.

However, the growth fell short of the governor's goal, notes Bollag.

That’s still a far slower rate of growth than Gov. Gavin Newsom and experts have said could alleviate the state’s housing shortage. For comparison, Newsom campaigned for governor on a platform that included building 3.5 million new housing units by 2025, which would have required the state to build more than half a million more units each year since he took office.

Political ramifications

POLITICO's California Playbook noted in their May 1 newsletter that “the Department of Finance’s most recent forecasts suggest the state’s population decline could continue into 2023 but stabilize the year after, with California picking up a couple thousand people in 2024.”

But even slow growth in the latter half of the decade could cause California to shed a second congressional seat after the 2030 [pdf] Census, a fate it narrowly avoided in 2020.

California was one of seven states to lose congressional seats following the 2020 Census.

Correspondent's note: Click on the tag, 'California Population,' for the latest demographic data from both the state and the U.S. Census Bureau.

Monday, May 1, 2023 in San Francisco Chronicle

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

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Hot air balloons rise over Downtown Boise with the State Capitol building visible amidst the high rises.

The Five Most-Changed American Cities

A ranking of population change, home values, and jobs highlights the nation’s most dynamic and most stagnant regions.

April 23, 2025 - GoodMigrations

Aerial view of flooding during Hurricane Helene in North Carolina.

‘Quality Work, Fast’: NC Gears up for Homebuilding After Helene, Trying to Avoid Past Pitfalls

The state will field bids to demolish, repair and rebuild homes in the mountains. After struggles in eastern NC, officials aim to chart a different course.

15 minutes ago - NC Newsline

Washington

Washington State’s Parking Reform Law Could Unlock ‘Countless’ Acres for New Housing

A law that limits how much parking cities can require for residential amd commercial developments could lead to a construction boom.

May 1 - Streetsblog USA

Bluebird sitting on branch of green bush.

Wildlife Rebounds After the Eaton Fire

Following the devastation of the Eaton Fire, the return of wildlife and the regrowth of native plants are offering powerful signs of resilience and renewal.

May 1 - AP News

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.