Demand for housing in the Bay Area has continued to grow due to our region’s high rates of job creation and new household formation. However, lethargic housing production has kept supply limited. In 2017, the Bay Area added just 14,900 housing units, a fraction of the peaks seen in the 1990s. The 2017 North Bay wildfires further exacerbated the housing crunch, destroying nearly 4,500 single-family homes in Napa and Sonoma counties.
Multi-family construction has driven growth since 2010, increasing nearly fivefold to 14,300 units in 2017. Meanwhile, single-family home production – once the majority of all Bay Area housing construction – has fallen to just 29 percent in the same period. Single-family production is still weak by historical standards and is 60 percent below the annual averages seen in the 1990s and 2000s.