Los Angeles Issues Fewer Residential Permits in First Half of 2024

July 22, 2024 — The Real Deal

From January through June, the City of Los Angeles approved permits for 5,208 new residential units, a decrease of 18.9%—or 1,216 fewer permits—compared to the same period in 2023, according to Urbanize L.A. citing research by Hilgard Analytics and Zenith Economics The Real Deal+1Wikipedia+1.

The most significant declines occurred in City Council Districts 1 (Downtown, Northeast L.A.), 4 (Sherman Oaks to Griffith Park), 10 (Koreatown to Mid‑City), 13 (Monterey Hills to Echo Park), and 15 (San Pedro). In contrast, Districts 3, 6, 7, and 12—primarily in the San Fernando Valley—showed growth The Real Deal.

This sharp drop follows a 5.3% decline in permits during the first half of 2023 compared to the same period in 2022—the total number of permitted building units in 2023 fell to 12,370, down from 15,593 in 2022 The Real Deal.

Joshua Baum (Hilgard Analytics) and Samuel Maury‑Holmes (Zenith Economics) noted that although interest rates had stabilized and employment remained strong, permitting continued to fall. They cautioned that:

“Even if the pace of residential permitting were to improve going forward, the shortage of deed‑restricted affordable housing, historic redlining and other exclusionary policies will keep L.A.’s housing and homelessness challenges acute for an extended period.” The Real Deal+1Wikipedia+1

The analysis also addressed the Mayor’s Executive Directive 1 (ED1)—intended to expedite 100% affordable housing projects. Despite over 10,000 units receiving ED1 approval in the past two years, only 588 ED1 units were permitted in the first half of 2024, up from 84 in the first half of 2023 The Real Deal. The study also identified 25 ED1-approved projects in the permitting pipeline for demolition or grading The Real Deal.