Housing Production — Big Pipeline, Slow Delivery
active• gilroy
Gilroy has a state-mandated RHNA obligation of approximately 1,810 units for the 2023–2031 cycle, with a commitment to 40 opportunity sites for multi-family homes, a downtown expansion district, and a First Street mixed-use corridor. But delivery has been extremely slow: the city issued only 37 residential building permits in 2025, though sizable projects now in the pipeline are expected to help move the numbers in coming years. The 2026 City Council work plan specifically identifies opportunity sites and programs in the Housing Element, a farmworker housing program, and an inclusionary housing ordinance as active priorities — reflecting a city trying to accelerate production while managing a community that chose Gilroy precisely for its affordable, small-town character. The gap between planning ambitions and actual permits issued is one of the most important metrics for residents and housing advocates to watch.
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Related cause: Housing affordability
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