Two Key Reasons California Housing Costs Remain High

This blog post takes a recent Public Policy Institute of California study and looks at it through a Marin County lens. Why do housing costs stay high, even as building picks up? And what does that mean for towns like San Rafael, Sausalito, Novato, and Larkspur?

What PPIC’s housing study reveals and why Marin should care

In Marin County and across California, the PPIC findings highlight a tough reality. Housing costs keep climbing, even as new homes appear.

For places like San Anselmo, Mill Valley, Corte Madera, and Tiburon, the trend is easy to spot. Builders add more homes, but prices and rents aren’t coming down.

The study points to a shift in how people form households. In Marin’s cities—Novato, Sausalito, and others—the real need isn’t just for more homes, but for homes that fit how people want to live now.

Smaller households and more folks living independently are driving these changes.

The numbers behind the headline

Key statistic: Between 2019 and 2025, California added over 677,000 homes. Meanwhile, the statewide population grew by fewer than 30,000.

Marin’s takeaway: For towns like San Rafael, San Anselmo, and Fairfax, those numbers create local pressure. More people want their own space instead of sharing.

Drivers shaping Marin’s housing demand

Several demographic shifts push the need for more housing in Marin, even if prices aren’t dropping fast.

  • An aging population: More seniors live alone or with just one other person. That means places like Ross and Fairfax see higher demand for separate units.
  • Independence among young adults: More young adults are moving out and starting their own households. This stretches Marin’s rental and for-sale markets in San Rafael and Novato.
  • Less sharing, more units: Fewer people are sharing homes. So, one household splits into two, and unit demand jumps—even if the number of people stays about the same.

Policy responses at the state level and implications for Marin

The Public Policy Institute’s findings land as state leaders try to speed up construction and clear out project bottlenecks. In Marin’s neighboring areas, officials wrestle with how to grow without losing open spaces or making traffic worse.

Recent state moves aim to limit local veto power over housing projects and unlock more units. Still, even with faster approvals, the gap in affordable homes won’t close overnight.

Hans Johnson, a PPIC researcher, says we need to keep pushing to build more housing. It’s the only real long-term fix for coastal counties like Marin and the Bay Area.

State efforts to speed construction

Governor Gavin Newsom and state lawmakers have pushed for policies to cut review timelines and reduce local barriers to new housing. In Marin, city and town councils—San Rafael, Mill Valley, Sausalito, and others—are figuring out how to apply these rules without losing local voices or skipping environmental reviews.

Local control and Marin’s approach

Balancing state pressure with Marin’s tradition of local control is a hot topic. Novato, Tiburon, and similar towns are looking at zoning updates, more density near transit, and encouraging ADUs (accessory dwelling units) to boost supply in ways that feel right for each community.

What this means for residents and next steps

For Marin residents, the PPIC study is a reminder to think long-term. Towns need more homes and more affordable options to stay vibrant—whether you’re in San Rafael’s Downtown, Sausalito’s waterfront, or Mill Valley’s hills.

As plans move forward, Marin’s leaders and neighbors should focus on practical steps. Aligning growth with open space protection and better transit matters.

That could mean streamlining permits for smart infill, supporting modest, transit-friendly projects, and making sure affordable homes fit naturally with market-rate units in real neighborhoods.

What Marin residents can do

  • Support zoning reforms that allow for a bit more density near transit hubs in Larkspur and San Anselmo.
  • Advocate for stronger ADU programs in Fairfax and Corte Madera. This way, we can add more homes without completely changing how the neighborhoods feel.
  • Show up at local planning meetings in Sausalito and Tiburon. Speak up for projects that protect open space but actually offer real affordability.
  • Push for faster permitting in Marin City and other areas that haven’t seen much new building. Let’s cut down the wait from proposal to move-in.

 
Here is the source article for this story: Why do California housing costs remain high? Researchers identify two factors

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Joe Hughes
Joe Harris is the founder of MarinCountyVisitor.com, a comprehensive online resource inspired by his passion for Marin County's natural beauty, diverse communities, and rich cultural offerings. Combining his love for exploration with his intimate local knowledge, Joe curates an authentic guide to the area featuring guides on Marin County Cities, Things to Do, and Places to Stay. Follow Joe on Facebook, Twitter, and Instagram.
 

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