Santa Cruz County has met the state’s zoning requirements for new housing but remains far behind its construction goals, prompting the Civil Grand Jury to recommend changes aimed at increasing development.
According to a new Grand Jury report, the county has zoned enough land to accommodate its state-assigned target of 4,634 new housing units in unincorporated areas during the current eight-year housing cycle. However, only 279 units, or about 6% of the goal, had been permitted by the end of 2025, even though more than one-quarter of the planning cycle has elapsed.
The report said high construction costs, combined with county-controlled factors such as density limits, development standards, impact fees, and permitting timelines, have made many housing projects financially unfeasible despite available zoning.
To help close the gap between planned and completed housing, the Grand Jury recommended that the county conduct and publish a comprehensive financial feasibility analysis.
The report further said the analysis could identify regulatory barriers limiting housing production and help the county better meet state housing requirements while addressing local housing affordability.