In 2016, California’s population grew at a rate of 0.7%. While still positive, this continues a downward trend in growth rate from the prior year. The annual rate of population growth is usually closer to 1%.

Steady population growth is essential for a long-term, stable housing market. The rate of California’s population growth, while continuing up, is forecasted to vary in step with other economic and political factors, bringing with it new household formations and demand for residential rentals and sales.

California’s rate of population growth varies from year to year, as seen on the above chart, but it has always increased over time. According to the California Department of Finance (DOF), It is almost unheard of to go a year without growth in California.

State population growth is essential for a stable housing market. Brokers and agents who know which demographics are likely to move to and from California’s diverse counties will be better positioned to accommodate the needs of those groups when they arrive.

If you’d like additional economic, real estate or mortgage information or to request a local market report, please reach out to me and I’d be happy to provide additional information for your community.