The City of Davis has long grappled with the challenges of housing affordability and availability. As the newly-released 2024 Housing Element Annual Progress Report, which will be presented to the City Council Tuesday as a Consent Agenda Item, makes clear, while Davis has made progress in approving new housing projects, the pace of construction and the mix of housing types are falling short of the city’s stated goals.
If Davis hopes to meet its obligations under California’s Regional Housing Needs Allocation (RHNA) and address the broader housing crisis, city officials must take a hard look at whether their current strategies are enough—or if a more aggressive approach is required.
The report reiterates that in 2024, building permits were issued for only 151 residential units, a steep decline from the 384 units permitted in 2023. Of these, 71 were single-family homes, 41 were multi-family rental units, and 39 were accessory dwelling units (ADUs).
The majority of the single-family homes and multi-family units came from the Bretton Woods development, which is primarily a retirement community.
While infill projects are an important component of Davis’s housing strategy, the numbers suggest that the city is not producing nearly enough housing to keep up with demand.
Over the 16-year period from 2009 through 2024, Davis has averaged 158 new units per year—far below what is needed to meaningfully address the housing crisis.
Moreover, a critical concern is the lack of affordable housing. The report notes that all of the units permitted in 2024 were categorized as “above moderate income”—meaning that none were specifically designated as affordable for low- or middle-income residents. This raises serious questions about the city’s ability to meet its obligations under the RHNA.
Davis’s Housing Element sets ambitious targets for affordable housing production, requiring the city to provide zoning and infrastructure to support 2,075 new units between 2021 and 2029. This includes:
- 290 extremely low-income units
- 290 very low-income units
- 350 low-income units
- 340 moderate-income units
- 805 above-moderate-income units
Yet, as of 2024, the city has only permitted 28 very low-income units and zero low-income units, despite needing to provide at least 640 units in these categories before 2029. If Davis continues at its current rate, it will fall far short of these legally mandated targets.
The report explicitly acknowledges this gap, stating: “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)” to comply with the RHNA.
ADUs—sometimes referred to as “granny flats” or backyard cottages—are often touted as a way to expand housing supply. In 2024, Davis permitted 39 ADUs, up from 23 in 2023.
However, the report casts doubt on their role in affordability, explaining that a previous city study found that many ADUs were rented at market rates rather than affordable levels. As a result, Davis now counts all newly-built ADUs in the “above moderate-income” category, meaning they do little to help meet the city’s affordable housing requirements.
In addition, 4,164 more units are awaiting entitlement approval, including 1,200 units at Shriners and 1,800 units at Village Farms. These projects, if built, would represent a major step toward solving the housing crisis—but they remain stuck in the entitlement pipeline requiring an approval by the voters via Measure J which is problematic at best, given the track record of Davis voters.
Why isn’t more housing being built? The report hints at some possible answers:
- Market Uncertainty – Rising construction costs, high interest rates, and labor shortages have slowed housing development across California.
- Slow Permitting Process – Even entitled projects must go through additional city approvals before breaking ground, leading to long delays.
- Political and Community Opposition – Davis has a history of slow-growth policies, and community resistance to new development remains a major obstacle.
The report acknowledges that “uncertainty in the financial markets and financing may have contributed to the change” in housing production from 2023 to 2024. However, this does not fully explain why Davis continues to fall behind its affordable housing targets while other California cities are making more substantial progress.
If Davis is serious about addressing its housing crisis, city leaders must take proactive steps to accelerate housing production, particularly affordable housing. Some key recommendations include:
- Expediting Affordable Housing Approvals
The city should prioritize projects that include significant affordable housing components. As the report states, “The city has demonstrated that enough sites are appropriately zoned to accommodate the RHNA.” However, zoning alone is not enough—Davis needs to streamline approvals and reduce bureaucratic barriers.
- Implementing “By-Right” Approvals for Affordable Housing
Many of the city’s slowdowns come from discretionary approval processes that allow for public opposition to delay or derail projects. By-right approvals, which eliminate lengthy review processes for projects that meet zoning and affordability requirements, could help fast-track housing.
- Incentivizing Developers to Build Affordable Units
Davis should consider additional incentives, such as tax breaks, density bonuses, and fee reductions, to encourage developers to build the low- and middle-income housing that is most needed.
- Revisiting the City’s Growth Policies
While Davis has historically focused on infill development, the report suggests that this strategy alone will not be sufficient. The city may need to reconsider carefully planned expansion areas, especially for affordable and workforce housing.
- Tracking and Enforcing RHNA Compliance
The city must ensure that it does not fall further behind on its RHNA obligations. If Davis fails to meet its targets, it risks losing local control over housing approvals, as state law allows for state intervention in noncompliant jurisdictions.
The data in the 2024 Housing Element Annual Progress Report makes it clear: Davis is not adding enough housing, especially affordable housing, to meet demand. Construction remains slow and approvals are even slower, and nearly all new units fall into the “above moderate-income” category.
Davis prides itself on being a progressive and inclusive community, yet its housing policies continue to exclude many lower-income families, workers, and students.
If the city wants to remain a vibrant and diverse place to live, it must take stronger action to accelerate housing production before the housing crisis worsens.
The time for incremental change has passed—Davis needs bold leadership and decisive action now.
David says: “While infill projects are an important component of Davis’s housing strategy, the numbers suggest that the city is not producing nearly enough housing to keep up with demand.”
How is “demand” being defined here?
If there’s such high demand, shouldn’t housing be a lot MORE expensive than it currently is? Shouldn’t all housing units be generating multiple offers well-above asking price?
Regarding Affordable (subsidized) housing, Davis does not control funding for that.
From article: The report acknowledges that “uncertainty in the financial markets and financing may have contributed to the change” in housing production from 2023 to 2024. However, this does not fully explain why Davis continues to fall behind its affordable housing targets while other California cities are making more substantial progress.”
Strange – your YIMBY friends don’t seem to agree that other cities are making “substantial progress”:
https://cities.fairhousingelements.org/