So, like, you heard about how L.A. housing construction is totally struggling, right? It’s a real bummer. According to some new report, developers only got permits for 1,325 new homes in the first quarter of 2025. That’s like, a 57% drop from last year. What’s up with that?
This research firm called Hilgard Analytics thinks it’s because of a bunch of stuff. High interest rates, tariffs, Measure ULA, and I guess the January wildfires didn’t help either. Apparently, business disruptions were a big deal. The west and northeast parts of the Valley, along with South LA, saw the biggest decreases in home building.
And get this – it’s not just a recent thing. Housing construction has been going down for a while now. In 2024, permits were down 23% from 2023. That’s a pretty big dip. If developers keep backing off, it could really mess with the city’s budget and make homes unaffordable. Not cool.
Experts say building more houses helps keep prices and rents from going crazy. But with all these issues, it’s getting harder to make it happen. Mayor Karen Bass is even cutting city jobs to deal with a billion-dollar budget gap. Yikes.
It’s not just L.A. that’s feeling the housing crunch. Developers all over the country are struggling with high interest rates and tariffs. Some blame Measure ULA for making things even worse in L.A. compared to other places. It’s a mess out there.
Hilgard Analytics only looked at L.A. in their report, but UCLA and Rand Corp. think the city is in worse shape than the rest of the county. They say fewer properties are selling, especially where developers usually build multifamily homes. Looks like things are tough all around.
