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California, epicenter of the nation’s housing crisis, is finally getting a housing agency

July 11, 2025

After years of soaring rents, increasingly out-of-reach home prices and an enduring homelessness crisis that touches every corner of the state, California is finally creating a state agency exclusively focused on housing issues.

You might wonder what took so long.

Earlier this year, Gov. Gavin Newsom introduced a proposal to split up the Business, Consumer Services and Housing Agency — an awkward grabbag of disparate bureaucratic operations — into two fresh agencies: One just for housing and homelessness-related departments and one for everything else. 

The Legislature had until July 4 to veto the plan. It didn’t (though some Republicans tried). Now the work of standing up California’s first housing agency begins. 

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