A new Public Policy Institute of California report found that concern about housing has increased sharply in several inland regions while declining in the Bay Area. The findings show how housing pressures differ across California, with Kern and North Central regions recording increases of more than 20 percentage points.
Key Takeaways
- PPIC found that concern about housing rose by more than 20 percentage points in the Kern and North Central regions.
- Bay Area residents reporting housing as a “big problem” declined by roughly 10 to 15 percentage points compared with earlier survey results.
- More than 80% of respondents in San Francisco and the East Bay still considered housing a major problem.
- Kern County recorded a 62% share of residents identifying housing as a big problem.
- PPIC researcher Eric McGhee said residents priced out of the Bay Area have moved into more affordable inland communities, contributing to housing pressure there.
PPIC Report Finds Housing Concerns Rising Inland
The Public Policy Institute of California found that housing concerns have risen sharply in parts of inland California while the share of Bay Area residents describing housing as a “big problem” has declined compared with earlier survey results. The findings come from PPIC research examining housing views across different regions of the state.
The report identified the Kern and North Central regions as areas where concern increased by more than 20 percentage points. The changes indicate that residents in those regions are reporting substantially greater concern about housing than they did in the earlier comparison period.
The findings cover different parts of California rather than treating the state’s housing situation as uniform. Bay Area residents continue to report high levels of concern, while several inland regions have experienced larger increases in the share of residents identifying housing as a major problem.
The report therefore distinguishes between the level of concern in a region and the change in concern over time. The Bay Area continues to have a high level of housing concern even though its share has declined from earlier surveys.
California’s housing policy has also included measures intended to increase supply and affordability. Recent California housing affordability reforms include changes to affordable housing financing and state funding for multifamily housing.
Bay Area Housing Concern Declines From Earlier Surveys
PPIC found that the share of Bay Area residents describing housing as a “big problem” declined by approximately 10 to 15 percentage points compared with earlier survey results.
The comparison uses earlier survey information against more recent responses. The decline does not mean that housing has stopped being a major concern in the Bay Area. The region continues to record some of the highest levels of housing concern in California.
More than 80% of respondents in San Francisco and the East Bay still identified housing as a big problem. That figure remains higher than the share reported in some inland regions where concern has increased.
The difference between the Bay Area’s current level of concern and its change from earlier surveys is central to the PPIC findings. Housing remains a major issue for a large share of Bay Area residents, but the proportion identifying it as a big problem has fallen compared with the earlier survey period.
The report’s regional comparison places the Bay Area alongside inland communities where housing concerns have moved in the opposite direction. The result is a more varied picture of California housing affordability across geographic areas.
Kern and North Central Regions Record Sharp Increases
The Kern and North Central regions recorded increases of more than 20 percentage points in the share of residents identifying housing as a big problem.
Kern County recorded a 62% share of residents who considered housing a big problem. That figure is lower than the more than 80% reported in San Francisco and the East Bay, even though the Kern region experienced a much larger increase compared with the earlier survey period.
The distinction provides two different measures of housing pressure. A region can have a lower overall share of residents identifying housing as a major problem while still experiencing a substantial increase in concern.
The PPIC findings identify several inland areas as having experienced the sharpest increases. The Kern and North Central regions are specifically cited for increases exceeding 20 percentage points.
Those results place inland California at the center of the report’s geographic findings. The changes indicate that housing affordability concerns are not limited to the state’s most expensive coastal communities.
For California readers, the regional figures also provide a basis for comparing housing concerns between communities. San Francisco and the East Bay have the highest reported levels of concern, while Kern and North Central California have recorded some of the largest increases.
High Housing Costs Continue to Affect Bay Area Residents
The decline in Bay Area concern does not establish that housing has become affordable in the region. More than 80% of respondents in San Francisco and the East Bay continued to describe housing as a big problem.
PPIC researcher Eric McGhee said the change in regional concern is connected to residents who have been priced out of the Bay Area and moved to more affordable inland communities.
That movement can change the composition of the population remaining in high-cost areas. Residents who continue to live in the Bay Area may be more able to absorb its housing costs than people who previously could not afford to remain there.
The result is a difference between measured concern and the underlying cost of housing. A lower percentage of residents identifying housing as a big problem does not by itself show that housing costs have fallen or that affordability has improved.
The Bay Area’s more than 80% figure demonstrates that housing remains a major concern even after the decline identified by PPIC. The comparison with Kern County also shows that a lower overall level of concern can coexist with a substantial increase over the earlier survey period.
Recent California housing policy has addressed affordability through financing and development measures. State reforms have included funding for affordable multifamily housing and changes intended to reduce costs associated with housing development.
Migration From Expensive Regions Adds Pressure Inland
McGhee said people who were priced out of the Bay Area have moved into more affordable interior parts of California, contributing to housing pressure in those communities.
The reported migration provides context for the increases identified in the Kern and North Central regions. Communities that offer lower housing costs can become destinations for residents leaving more expensive areas, potentially changing local housing pressures.
The PPIC findings specifically connect the Bay Area’s housing economics with effects beyond the region. The report’s geographic comparisons show that housing concerns have increased in areas that have historically been more affordable than the Bay Area.
The shift also affects the interpretation of housing concerns across income groups and locations. A region with a lower overall percentage of residents identifying housing as a big problem may still experience significant increases in concern if housing costs become more difficult for local households.
A separate report on California population migration has examined how housing costs influence where residents live, including movement toward areas where housing is more accessible.
California’s housing affordability picture therefore differs substantially by region. The Bay Area continues to have the state’s highest reported levels of concern in San Francisco and the East Bay, while inland regions including Kern and North Central California have recorded much larger increases compared with earlier survey results.
The PPIC report provides a regional measurement of those differences, showing that housing concern has not moved in the same direction across California. The findings place the state’s inland communities alongside the Bay Area in assessing the effects of housing costs and affordability.
State housing policy is also addressing the supply side of the issue, including projects that have already received approvals but remain delayed. A separate report found that nearly 40,000 affordable units were stalled across California because of financing difficulties, construction costs and other delays.
Frequently Asked Questions
What does the new PPIC report say about California housing?
The Public Policy Institute of California found that concern about housing has declined in the Bay Area while increasing sharply in several inland regions. Kern and North Central California recorded increases of more than 20 percentage points.
Which California regions have seen rising housing concerns?
The Kern and North Central regions recorded increases of more than 20 percentage points in the share of residents identifying housing as a big problem. The report identifies these areas among the regions experiencing the sharpest increases.
Has housing concern declined in the Bay Area?
Yes. The share of Bay Area residents identifying housing as a big problem declined by approximately 10 to 15 percentage points compared with earlier survey results. Housing remains a major concern, however, with more than 80% of respondents in San Francisco and the East Bay still identifying it as a big problem.
How many Bay Area residents still consider housing a major problem?
More than 80% of respondents in San Francisco and the East Bay said housing was a big problem. That remains a higher overall share than the 62% reported in Kern County.
What does the report say about housing pressure in inland California?
PPIC researcher Eric McGhee said residents priced out of the Bay Area have moved into more affordable inland communities, contributing to housing pressure there. The report found that concern about housing has increased sharply in several of those inland regions.
