Housing Growth Falls Short of Projections
May 05, 2026 01:53PM ● By Susan Meeker
The annual report, required under state law, tracks housing development activity and the county’s progress in meeting regional housing needs. Designed by Magnific
YUBA CITY, CA (MPG) - Sutter County is building far fewer homes than planned, a trend officials said is limiting growth and complicating efforts to meet state housing requirements.
During an April 28 meeting, the Sutter County Board of Supervisors received its 2025 Housing Element Annual Progress Report, which showed the county’s housing growth rate at 0.22%, well below the 5% projected in the county’s general plan.
The annual report tracks building activity, affordability levels and the county’s progress toward meeting state housing goals, which are set through regional housing needs allocations.
The report comes as state housing officials have raised concerns about the county’s compliance, prompting updates to local policies and zoning rules.
Senior Planner Casey Murray told supervisors several factors are slowing development, including floodplain restrictions across large portions of the county and a lack of infrastructure needed to support larger projects. He said those limitations have slowed larger residential projects that would add more units and help diversify the county’s housing supply. The slower pace has reduced expected development impact fee revenue and limited the county’s ability to expand housing supply.
Murray said the type of housing being built remains a challenge, with most new construction consisting of large single-family homes while the state expects more lower-cost, higher-density options.
“Our department on averages provides building permits for about 15 to 40 single family residences a year,” Murray said, noting most range from 3,000 to 10,000 square feet.
Murray said that pattern does not align with state housing targets, as larger homes do little to address lower-income housing demand. He said meeting those targets typically requires smaller or multi-family units such as duplexes or apartments.
The annual report, required under state law, tracks housing development activity and the county’s progress in meeting regional housing needs. It was submitted earlier this year to the California Department of Housing and Community Development and accepted as complete.
Supervisors took no action on the item which was presented for informational purposes.
County staff plan to return to the board within the next few months with proposed zoning changes aimed at improving compliance with state housing requirements and encouraging more balanced development.















