California Housing crisis. California has a growing housing crisis with a deficit of nearly 4 million housing units and analysts say the deficit is growing at a rate of about 50,000 units a year. Despite all the construction going on in LA more housing construction is needed. There will be continued upward pressure on rents. It is a compelling situation for real estate investors. The negative side of all this is a lack of affordable housing for working class people and a high level of homelessness in major cities.