Los Angeles Permits 8,800 New Homes in First Half of 2026, Tripling Previous Year’s Pace

A new report from Hilgard Economics indicates a significant uptick in residential construction permits issued by the City of Los Angeles, with over 8,800 new homes approved in the first half of 2026. This represents a nearly threefold improvement compared to the same period last year and surpasses the approximately 8,700 residential units permitted citywide in all of 2025.

However, this rebound is partially attributed to depressed activity in early 2025 following January wildfires, with some 2026 approvals for replacement housing. The report emphasizes that despite this increase, housing production remains "well below the level needed to meaningfully address Los Angeles County's longstanding housing shortage," advocating for sustained increases to improve affordability.

Broader economic indicators in Los Angeles County include a persistent affordability crisis, with median rents reaching $2,692 and single-family home prices at $910,370. Commercial real estate also faces headwinds, with countywide office vacancy rates exceeding 23 percent. This complex market environment highlights residential development opportunities but also persistent challenges requiring strategic project evaluation.