Newsom Falls Dramatically Short of His Housing Goal as California’s Homelessness Crisis Rages on

Despite billions in spending and sweeping government mandates, California’s housing crisis continues to worsen under progressive leadership. This highlights a pattern of policy failures that have left residents facing skyrocketing costs and unprecedented homelessness rates.

The state’s ambitious housing initiatives, championed by Democratic leaders as transformative solutions, have repeatedly failed to deliver on their promised outcomes. These failures come as housing costs continue to surge. This pushes middle-class families toward financial instability and forcing many to flee to more affordable states.

State officials have implemented dozens of new regulations and spending programs since 2019. Meanwhile, they’ve consistently opposed market-based solutions that could address the root causes of the housing shortage.

Governor Newsom’s Major Fail

In a revealing demonstration of progressive policy failure, Governor Gavin Newsom has achieved only one-third of his boldly promised housing goal. Indeed, he has fallen dramatically short of his pledge to develop 3.5 million new housing units by 2025. The actual numbers paint a stark picture: just 1.1 million homes have been permitted during his tenure, with even fewer actually constructed.

The statistics tell an even more troubling story. According to official state data, only about 650,000 new homes were permitted between 2019 and 2023, averaging roughly 110,000 newly approved units per year. This is far below the approximately 500,000 annual units needed to meet Newsom’s initial goal. That shortfall persists despite the implementation of numerous laws aimed at streamlining construction and billions in state funding.

This housing crisis has directly fueled California’s growing homeless emergency. Point-in-time count data reveals California’s homeless population has surged from 150,000 in 2019 to approximately 180,000 in 2023, even as the state spent billions on hotel and motel room programs marketed as solutions. These expensive interventions have failed to address the fundamental supply-and-demand imbalance created by restrictive policies and regulations.

Newsom’s Other Fails

The housing failure mirrors other progressive policy disappointments under the current administration. Newsom’s wildfire prevention program struggled to launch effectively. His electric vehicle mandate is also falling short of necessary adoption rates to meet the state’s 2035 goals. These repeated shortcomings demonstrate a broader pattern of progressive policies that prioritize ideological goals over practical results.

Housing costs have continued their relentless climb throughout this period. When Newsom first outlined his housing goals in 2017, the median home price was $546,430. Adjusted for inflation, that would be approximately $698,908 in today’s dollars. Instead, prices have skyrocketed to $868,150 in 2023, putting homeownership increasingly out of reach for ordinary Californians.

In contrast, recent market-oriented approaches have shown promising results. Proposition 36, which restored penalties for shoplifting and was opposed by Newsom and most Democrats, has demonstrated immediate positive impacts since its implementation in late 2023. This success highlights how traditional, common-sense approaches often outperform complex government interventions.

The mounting evidence suggests that California’s housing crisis requires a fundamental shift away from failed progressive policies toward market-driven solutions that reduce regulatory burdens and encourage private sector development. As housing costs continue to rise and homelessness grows, the stakes for California families couldn’t be higher.

The time has come for policymakers to acknowledge that more government intervention and spending aren’t the answer. Instead, reducing regulatory barriers, streamlining permit processes, and embracing market-based solutions could provide the path forward that California desperately needs.

This pattern of progressive policy failures serves as a warning to other states considering similar approaches. As California’s experience clearly demonstrates, good intentions and government mandates are no substitute for practical, market-oriented solutions that actually deliver results for American families.

Key Takeaways: 

• Progressive housing policies delivered only one-third of promised homes while spending billions.
• The homeless population jumped by 30,000 despite massive government spending on hotel programs.
• Market-based solutions like Prop 36 succeed where progressive policies continue to fail.
• California’s failed experiment serves as a warning to other states considering similar policies.

Sources: Breitbart, The San Francisco Chronicle