A Housing Crisis Decades in the Making: Fullerton's Struggle with Homelessness

Housing advocates, journalists and state officials have increasingly warned that Fullerton’s long-running housing shortage could reshape neighborhoods and strain homeowners if the city fails to expand affordable housing.

Over the past several years, investigative reporting, state enforcement actions and local advocacy campaigns have pointed to a consistent theme: Fullerton has not produced enough housing for lower-income residents, and the consequences are already emerging in the form of rising rents, housing instability and growing homelessness.

Investigative Reporting Highlights the Housing Gap

Local journalists have repeatedly documented Fullerton’s housing challenges.

In a 2025 investigation for Voice of OC, reporter Hosam Elattar described how city officials were forced to adopt a state-mandated housing plan after years of delays.

The city must now plan for more than 13,000 housing units by 2029, including over 5,000 homes for low- and very-low-income residents.

The requirement followed legal action by the state after Fullerton failed to adopt a compliant housing plan on time.

According to the state settlement announcement, California officials said the city had “failed to fulfill their legal duty” to adopt a housing element meeting regional housing needs.

The settlement requires Fullerton to update zoning laws and demonstrate how it will accommodate thousands of additional homes.

State housing officials also warned that continued non-compliance could result in penalties or loss of local control over certain development decisions.

Advocates Say Housing Shortages Drive Homelessness

Housing advocates argue the city’s housing deficit is closely connected to the rise in homelessness seen across Orange County.

Organizations such as People for Housing Orange County and the Fullerton Housing Alliance have long advocated for increased housing construction, particularly for working-class residents.

Advocates say when cities fail to build enough housing, people pushed out of the rental market often end up doubling up with family members, living in vehicles or eventually falling into homelessness.

In Fullerton, the shortage is particularly pronounced for lower-income households.

Between 2018 and 2023, a majority of new housing built in the city was targeted at higher-income residents, while far fewer units were produced for people with very low incomes.

Housing advocates argue that imbalance contributes directly to housing instability.

The Ripple Effect on Homeowners

While housing shortages primarily affect renters, experts say homeowners also experience indirect impacts.

Those impacts often appear in unexpected ways.

When people cannot find stable housing, they frequently turn to informal or temporary options — including encampments in underused spaces such as riverbeds, vacant land or abandoned infrastructure.

In many cities across California, that has translated into encampments near residential neighborhoods.

Homeowners then face issues such as:

increased emergency calls
sanitation concerns
property damage or fire risks
neighborhood tensions over enforcement

Housing advocates say those problems are symptoms of a deeper structural issue: a mismatch between housing supply and demand.

Affordable Housing Projects Face Debate

Even when affordable housing projects are proposed, they often generate debate among residents and city officials.

A 2023 report by Voice of OC described how the Fullerton City Council approved a 65-unit affordable housing project at 1600 W. Commonwealth Avenue after months of discussion about design, transportation access and neighborhood impacts.

Some residents supported the development as a step toward addressing the housing shortage.

One public commenter described the project as “what we need in the community: more housing,” according to reporting from the meeting.

But debates like these illustrate the political tensions surrounding housing construction in built-out communities.

A Regional Housing Crisis

Fullerton’s situation reflects a broader trend across California.

The state has pushed cities to zone for 2.5 million new homes statewide by the end of the decade in order to address rising housing costs and shortages.

Many local officials argue the targets are unrealistic for cities with limited land.

Housing advocates counter that decades of restrictive zoning and resistance to density are major contributors to today’s affordability crisis.

What Happens If the Shortage Continues

Advocacy groups warn that if cities fail to build enough housing — particularly affordable housing — several outcomes are likely:

More housing instability

Working families may struggle to remain in the city as rents continue rising.

More state intervention

California has increasingly taken legal action against cities that fail to comply with housing laws.

Greater neighborhood impacts

Housing shortages often push homelessness and overcrowding into residential areas, affecting homeowners as well as renters.

Advocates argue that expanding housing supply — particularly affordable housing — is the only long-term way to reduce those pressures.

A Turning Point for Local Policy

Fullerton’s newly adopted housing plan represents an attempt to address the gap.

Whether the city ultimately produces the required housing — and how quickly — will likely shape the city’s housing market for decades.

For now, housing advocates say the message from state officials and local reporting is clear: the longer cities wait to address housing shortages, the more visible the consequences become.

Fullerton Officials Gear Up For Over 13,000 New Homes Across the City

California Reaches Settlement with City of Fullerton Over Violations of Housing Law

A Housing Crisis Decades in the Making: Fullerton’s Struggle with Homelessness

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