California requires every community in the state to build a certain number of housing units every year to keep up with demand. But nearly all of the state's cities and counties fell short, according to the California Department of Housing and Community Development.

About 98 percent of them did not reach their goals. Beverly Hills and San Fernando were among the 2 percent that did.

"It's very normal," says Richard Green, director and chair of the University of Southern California Lusk Center for Real Estate. "Unless somebody is willing to sue their community over their non-compliance, there's just not a lot that can be done about this."

The goals are calculated by using a number of factors, such as jobs created in a city and a city's projected population growth over time.

However if few cities meet those benchmarks, it can further exacerbate the current housing crisis.

"That means we don't have enough housing, and the price goes up," Green says.