LA outpaces 2025 housing permitting total in first six months of the year
By TRD Staff
August 19, 2026
Los Angeles saw a significant rebound in residential permitting activity during the first half of 2026, according to new research from Hilgard Economics, although the city continues to face a substantial housing shortage.
The City of Los Angeles issued permits for more than 8,800 new homes during the first six months of 2026, exceeding the roughly 8,700 units permitted throughout all of 2025. The latest figures represent nearly three times the permitting activity recorded during the same period last year.
Joshua Baum, founding principal of Hilgard Economics, cautioned that the rebound should be viewed in context. Permitting activity in early 2025 was depressed following the January wildfires, while some of the new housing permitted in 2026 represents replacement construction for homes destroyed in the Palisades and Eaton fires.
“Even with this year’s rebound, housing production remains well below the level needed to meaningfully address Los Angeles County’s longstanding housing shortage,” Baum said. “Sustained increases in housing construction across a range of price points will be necessary to improve affordability, accommodate future population and employment growth, and reduce upward pressure on housing costs over the long term.”
Despite the increase in permits, significant obstacles remain. Developers continue to face financial feasibility challenges, and permits do not necessarily translate into completed homes.
Los Angeles also remains well behind its state-mandated housing goals. The city must plan for 456,643 new residential units by 2029, including 184,721 affordable units.
Meanwhile, housing affordability continues to challenge the region's residents, with median monthly rents in Los Angeles County reaching $2,692 in June and median single-family home prices standing at $910,370.
The findings underscore the gap between a short-term rebound in housing permits and the sustained construction needed to address Los Angeles' long-term housing shortage.
