Report: L.A. permits 8,800 homes in the first half of 2026

By Steven Sharp
August 18, 2026

Residential construction appears to be on the upswing in Los Angeles, according to new research from Hilgard Economics.

In the first half of 2026, the City of Los Angeles issued permits for more than 8,800 new homes, nearly three times the number permitted during the same period in 2025. The six-month total also exceeded the approximately 8,700 residential units permitted during all of last year.

However, Joshua Baum, founding principal of Hilgard Economics, cautioned that the apparent rebound should be viewed in context. Permitting activity in early 2025 was significantly affected by the January wildfires, while some of the new housing permitted in 2026 represents replacement construction for homes lost in those 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,” wrote Baum. “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.”

Hilgard Economics' Regional Pulse report also highlighted broader challenges facing the Los Angeles economy. While employment has continued growing, gains have been concentrated in education and health services, offsetting job losses in manufacturing, government, information, financial services, trade, and transportation.

The report also documented continued weakness in the entertainment industry, with FilmLA recording 4,711 filming days during the second quarter of 2026, a 12.7 percent decline from the previous year.

Meanwhile, housing affordability remains a significant economic challenge. Median monthly rents reached $2,692 in June, while the median single-family home price stood at $910,370. Commercial real estate conditions were also challenging, with office vacancy exceeding 23 percent countywide and 30 percent in Downtown Los Angeles.