This wealthy, “pro-housing” South Bay city is falling behind on its housing goals – so is the rest of the Bay Area
By Luis Melecio
Published on March 12, 2026.
The wealthy Silicon Valley tech hub, Sunnyvale, California, is falling behind on its housing goals, according to a city report. Despite claiming to have the most progressive housing laws in the state, the city has only met a fraction of its state-required housing goals. The report also revealed that many other Bay Area cities are struggling to meet their housing goals due to aggressive state housing laws and political and economic headwinds. The progress is mainly concentrated in housing for those with “above moderate income” for those earning more than $195,200 for a family of four. California was only 14% of the way to meeting this cycle's housing goals and data from last year showed that the Bay Area as a whole lagged behind. Housing experts and advocates argue that this slow progress and bias towards housing for higher earners is not new, but it is endemic to California. Recent proposals for California's budget cut for housing and homelessness funding would result in a $1.4 billion reduction at the federal level, which could result in the Trump administration's plans to divert funding earmarked earmarked for permanent housing projects at the level of Iran.
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