Gavin Newsom issues ‘final warning’ amid California’s dire housing crisis — what’s at stake for millions of residents

California Gov. Gavin Newsom and the state's Department of Housing and Community Development issued final warnings to 15 cities and counties that have failed to comply with state housing law. The communities that received notices are: Atwater, Avenal, California City, Corcoran, Escalon, Half Moon Bay, Hanford, Kings County, Lemoore, Merced County, Montclair, Oakdale, Patterson, Ridgecrest, and Turlock. Under California law, every community must adopt a housing plan showing how it intends to meet regional residence needs across all income levels. Ninety-two percent of the state's jurisdictions have complied, but the 15 holdouts are more than two years behind schedule. Housing prices nationwide have climbed roughly 60% since 2019, with the median existing home now selling for about five times the median household income. Restrictive local zoning is a major reason supply hasn't kept pace with demand, with roughly 75% of residential land in many American cities zoned exclusively for single-family homes.