California has seen its population growth return for the second consecutive year, primarily driven by larger cities like Bakersfield and San Diego. Despite this growth, the state remains challenged by net outmigration, with a loss of 7,000 residents to other states. Natural increase accounted for significant growth; however, the housing market is still struggling to keep pace. The production of accessory dwelling units has increased notably, representing a proactive step towards addressing housing shortages even as the population level struggles to climb back to pre-pandemic numbers.
The state's population has grown for the second straight year, reversing a pandemic decline with increased growth in larger cities, led by Bakersfield.
California's net migration fell by 7,000 people, even as natural increase contributed to a gain of 114,805 residents last year.
Housing growth in California lagged behind other states, with only a 0.84% increase, despite one in five new homes being accessory dwelling units.
Despite some cities rebounding post-pandemic, California's population still remains 9,000 short of its pre-pandemic peak, reflecting ongoing migration challenges.
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