Davis, CA – The City of Davis has released its Housing Element Annual Progress Report for 2024, detailing the city’s residential development trends, progress in meeting state-mandated housing goals, and upcoming housing projects.
The report, which was prepared by Community Development Director Sherri Metzker and Senior Planner Eric Lee, and will be presented to the Planning Commission on March 12, 2025, and will be discussed at the City Council meeting on March 18, 2025 before being submitted to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (OPR).
The report highlights a notable decrease in new housing permits issued in 2024, compared to the previous year. In total, 151 new residential units were permitted in 2024, a significant drop from 384 units permitted in 2023.
“Compared to 2023, housing production in Davis slowed from 384 units in 2023 to 151 units in 2024,” the report states . The decline is largely due to a decrease in multi-family housing approvals, with only 41 new multi-family rental units permitted in 2024 compared to 360 units in 2023.
The Bretton Woods subdivision accounted for 110 of the 151 permitted units, including 69 single-family homes and 41 multi-family units associated with the University Retirement Community . The remaining 39 units were accessory dwelling units (ADUs), which were constructed at various locations throughout the city.
Despite the slowdown in new construction, entitlement approvals remained strong, with 368 units approved in 2024, and an additional 656 units expected to receive entitlements in 2025.
Affordability Concerns and RHNA Compliance
The report reveals that Davis is falling short in meeting its Regional Housing Needs Allocation (RHNA) goals for low-income and very low-income housing. Under the state’s RHNA mandate, the city must plan for 2,075 new housing units between 2021 and 2029, allocated across different income levels:
- 290 units for extremely low-income households
- 290 units for very low-income households
- 350 units for low-income households
- 340 units for moderate-income households
- 805 units for above-moderate-income households
As of 2024, the city had issued permits for only 28 very low-income units and no low-income units, leaving a deficit of 612 units in these categories. Meanwhile, Davis has already permitted 338 above-moderate-income units, indicating an imbalance in housing production .
“The city will have to issue building permits for 350 more low-income and 262 more extremely/very low-income units during the 6th housing cycle (prior to 2029),” the report states, emphasizing the need for more affordable housing projects .
Accessory Dwelling Units (ADUs) on the Rise
One trend highlighted in the report is the steady increase in Accessory Dwelling Units (ADUs), also known as granny flats or in-law units. In 2024, 39 ADUs were permitted, continuing an upward trend seen in recent years:
- 2021: 20 ADUs permitted
- 2022: 17 ADUs permitted
- 2023: 23 ADUs permitted
- 2024: 39 ADUs permitted
While ADUs can contribute to affordable housing options, the report notes that many of the ADUs in Davis have been rented at higher-than-expected rates, prompting the city to conduct an ADU affordability study every two years to ensure they are counted appropriately toward the city’s RHNA goals .
Future Housing Development and Policy Changes
Looking ahead, the city has several major housing projects in the pipeline (however 3000 of that depends on voter approval), including 4,164 units awaiting entitlements across various developments. Notable projects include:
- Village Farms: 1,800 total units, with 300 affordable units
- Shriners: 1,200 total units, with 240 affordable units
- Promenade (Nishi): 700 total units, with 60 affordable units
- The Leonardo (1616 Da Vinci): 368 total units, with 74 affordable units
In addition, Davis is moving forward with the Downtown Davis Specific Plan, which aims to add up to 1,000 new infill residential units by 2040 while promoting economic development and sustainability. Since the plan’s adoption in 2022, the city has already approved 368 mixed-use or housing units in the downtown area .
Challenges in Meeting Housing Goals
Despite these developments, several obstacles remain in meeting Davis’ housing needs:
- Market Uncertainty: High interest rates, construction costs, and labor shortages have made large-scale developments more challenging.
- Slow Affordable Housing Production: The city has struggled to attract developers willing to build low-income and very low-income units.
- Community Resistance to Growth: Davis has historically favored slow growth and infill development over urban expansion, which limits large-scale projects.
To address these challenges, the city is undertaking a Comprehensive General Plan Update, which will guide future development policies and ensure compliance with new state housing mandates .
The 2024 Housing Element Annual Progress Report provides a mixed picture of Davis’ housing landscape. While the city has made progress in approving new housing projects, the slowdown in actual construction and the lack of affordable housing production remain pressing concerns for the current cycle.
