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LA apartment construction — Permits Surge 82% in LA and OC

LA apartment construction
Apartment construction permit applications have surged in LA and Orange County. [Unsplash]

A surge in multifamily housing permits has sparked expectations of an expanding rental supply across Southern California, with LA apartment construction plans rising sharply this year.

Multifamily Housing Permits Soar in LA and Orange County

According to an analysis of U.S. Census Bureau building permit data by the Daily News, a total of 16,643 multifamily housing units applied for construction permits in Los Angeles and Orange County between January and August of this year. This represents an 82% increase compared to the same period last year.

Specifically, the permit application volume for the first eight months is the highest since 2015 and marks the second-highest level in 36 years since comparable statistics began in 1990. It is also 32% higher than the average of the past decade. This trend is interpreted as a sign that the housing supply expansion policies pursued by state and city governments are yielding results through an increase in construction plans.

However, experts point out that apartment construction requires a significant amount of time, and some approved projects may face delayed construction starts or cancellations altogether.

Broader California Trends and Regional Disparities

Across California as a whole, a total of 36,600 multifamily units were permitted statewide from January to August, up 33% from the previous year. This is the third-highest volume for the same period since 1990, driven heavily by the expanded construction plans in LA and Orange County.

In contrast, major Southern California regions outside of LA and Orange County are seeing a decline in multi-family housing construction plans. The Inland Empire region, encompassing Riverside and San Bernardino counties, recorded 2,384 multifamily building permits from January to August, down 33% from last year. This is the lowest level since 2022 and 8% below the 10-year average.

San Diego County similarly saw building permits fall 17% year-over-year to 4,359 units, marking the lowest level since 2020 and a 1% drop compared to the 10-year average.