Southern California Housing Construction in 2025

  • May 23, 2025
| Written by
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It is no secret that, like much of the United States, Southern California continues to grapple with a significant affordable housing shortage.

Despite efforts to increase construction, the demand for affordable units far exceeds supply. As of late 2024, nearly 45,000 affordable housing units were stalled statewide, awaiting final funding to commence construction.

To address this crisis, construction efforts are intensifying in several Southern California regions including:

  • Oxnard: Experiencing increased development due to its relative affordability compared to its immediate neighboring areas
  • Riverside and San Bernardino (Inland Empire): These regions are expected to see a surge in affordable housing projects due to their relative affordability and growing populations. State housing laws, such as SB 684, facilitate streamlined approvals for smaller housing developments, aimed at accommodating the growing workforce population.
  • Bakersfield: Seeing increased activity as developers seek more cost-effective land options.
  • Baldwin Hills, Los Angeles: Set to host a new mixed-use development led by Thrive Living featuring 800 apartment units above a Costco store. Construction is scheduled to begin in early 2025, with completion expected by 2027.
  • Santa Monica: Frank Gehry's "Ocean Avenue Project" mixed-use development will include retail, restaurant, and residential spaces, with a portion dedicated to affordable housing. Construction is anticipated to start in early 2025, pending further approvals.
  • San Diego: The "Midway Rising" project aims to redevelop the area around Pechanga Arena into a mixed-use complex featuring a new sports arena, thousands of housing units, retail spaces, and parks.
  • Antelope Valley: The Centennial development plans to build approximately 19,333 homes over 30 years, with 18% designated as affordable housing.

 

 

Staples Construction has been actively building affordable housing in the region for years. Notably, we completed:

  • Bryson Legacy in Los Angeles' MacArthur Park area, is a 55,000-square-foot complex offering affordable units. After its recent opening in 2025, it earned a Silver Award for Affordable Housing Project of the Year.
  • Ventura Springs Veterans Housing, a 122-unit affordable housing community in Ventura, California, designed to provide supportive housing for formerly homeless and low-income veterans and their families, featuring on-site services and amenities to foster a family-oriented, pedestrian-friendly environment.
  • ​Dolores Huerta Gardens, a 58-unit affordable housing development in Oxnard, California, designed to provide homes for farmworkers and formerly homeless veterans, featuring on-site supportive services and community amenities to foster a safe and sustainable living environment.
  • ​Las Palmas Apartments, a 54-unit permanent supportive housing community in Wilmington, Los Angeles, developed through the adaptive reuse of a 1950s Safeway grocery store and new construction, providing fully furnished studios and one-bedroom units with on-site case management and communal amenities for individuals who have experienced homelessness.

Addressing Southern California's affordable housing shortage requires a multifaceted approach, combining strategic location selection, innovative construction methods, and adherence to best practices to deliver sustainable and cost-effective housing solutions. To keep up with demand and to do it in a responsible manner, successful affordable housing projects in Southern California adhere to several best practices:

  • Early Contractor Involvement: Engaging general contractors early in the planning process ensures better alignment on budget and timelines.
  • Efficient Design: Maximizing space utilization and incorporating energy-efficient features help reduce long-term costs.
  • Modular Construction: Utilizing prefabricated modules can expedite construction timelines and lower costs.
  • Sustainable Building Practices: Implementing green building standards promotes environmental responsibility and can lead to operational savings.
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