Report by Hilgard Analytics finds 23% drop in residential permitting rates in Los Angeles

Los Angeles, California Jan 14, 2025 (Issuewire.com) - Hilgard Analytics has released a new study, Residential Permitting in the City of Los Angeles Q4/Annual 2024 Update, showing a 23 percent decline in citywide residential permits issued in 2024 compared to 2023.

The analysis reveals that 8,706 units were approved, down from 11,311 the previous year, marking a sustained slowdown in permitting for new housing construction.

According to the study, persistently high interest rates and financial uncertainties tied to Measure ULA appear to have discouraged development.

Ongoing debates regarding Proposition 33 and broader instability stemming from the presidential election further complicated investment decisions and contributed to a wait-and-see stance among developers.

Overall, the report found that 10 of Los Angeles 15 City Council districts recorded year-over-year permitting declines.

However, a few districts, such as CD6 and CD7, saw substantial increases.

CD6 saw permitting activity rise by 244.1 percent, while CD7 posted a significant 538.9 percent increase.

While those increases are encouraging, they failed to offset citywide declines.

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By contrast, Council District 13 (CD13) faced the steepest decline, with permits plummeting by 76.1 percent.

The 23% decline in residential permitting citywide is a wake-up call for policymakers and developers. While a few districts like CD6 and CD7 show resilience, the city must address systemic barriers to meet its housing goals. Hilgard Analytics stands ready to provide the data needed to guide informed decision-making, said Joshua Baum, Principal of Hilgard Analytics, in a statement accompanying the report.

The report highlights deep-seated structural hurdles, including a longstanding shortage of affordable housing, redlinings lingering effects, and exclusionary zoning policies.

Climate change-related displacement, notably due to wildfires in areas like Pacific Palisades, underscores the urgency of resilient housing solutions.

These issues, the study notes, are unlikely to diminish even if conditions improve in 2025.

Researchers point to potential tailwinds, such as anticipated Federal Reserve interest rate cuts, rumored reforms to Measure ULA, and a CHIPs plan under consideration at Los Angeles City Hall, as possible catalysts for a partial permitting rebound.

Yet leading experts conclude that without broader reforms addressing affordability, sustainability, and equity, the citys housing and homelessness crises will persist.

Hilgard Analytics derived its findings from newly updated data from the Los Angeles Department of Building and Safety (LADBS), using a revised methodology that improves upon previous reports.

This updated approach includes only single- and multi-family residential units (excluding ADUs) and focuses solely on permits for new buildings.

The firm notes these figures are subject to revision and invites inquiries for more detailed or customized analyses.

For additional information or to view the report, contact Hilgard Analytics at (949) 683-6201 or visit hilgard-analytics.com.

About Hilgard Analytics

Hilgard Analytics is a socially conscious, LGBTQ+ owned and operated small business specializing in real estate and economic development research. Hilgard harnesses data-driven insights to help individuals and organizations overcome challenges and chart a strategic path forward. Its expert team combines diverse skill sets in urban planning, economic research, and community engagement. It serves a wide range of clientsincluding government entities, private developers, non-profit organizations, and community groups. By combining analytical rigor with a deep commitment to social responsibility, Hilgard Analytics strives to foster inclusive growth and sustainable development for every community it serves.