By Cris Alarcon, InEDC Writer. (April 13, 2025)
Placerville, Calif. — April 13, 2025
El Dorado County is grappling with a deepening affordable housing crisis, as a combination of soaring housing costs, reduced funding, and limited development has left thousands of residents struggling to find stable, affordable homes.
According to the California Housing Partnership’s 2024 Affordable Housing Needs Report, approximately 3,555 low-income renter households in the county lack access to affordable housing. Alarmingly, 70% of extremely low-income households are spending more than half of their income on housing, compared to just 3% of moderate-income households .
Compounding the issue, state and federal funding for housing production and preservation in El Dorado County has plummeted by 71% from the previous year, totaling only $46 million in 2023 . This significant decrease hampers efforts to develop new affordable housing units and maintain existing ones.
The county’s Housing Choice Voucher Program, formerly known as Section 8, provides rental assistance to low-income individuals and families, allowing them to select housing in the private market. Participants typically pay about 30% of their income toward rent, with the Housing Authority covering the remainder . However, the demand for vouchers far exceeds supply, leaving many eligible residents on lengthy waiting lists.
In response to the crisis, local organizations are stepping up. Housing El Dorado, a nonprofit based in Placerville, is dedicated to creating and promoting affordable housing solutions and support services that nurture individuals and families while encouraging self-sufficiency .
Despite these efforts, proposed affordable housing projects often face community resistance. For instance, a proposed five-acre housing complex in the Sierra Crossing neighborhood has raised concerns among residents about the project’s size and potential impact on the area .
The median listing home price in El Dorado County was $729,000 as of February 2025, with a median price per square foot of $364 . Such high prices make homeownership unattainable for many, further exacerbating the housing affordability issue.
As El Dorado County continues to confront these challenges, collaboration between government agencies, nonprofits, and the community will be crucial in developing sustainable solutions to ensure all residents have access to safe and affordable housing.