The Real Estate Research Council of Southern California reports that building permits were issued for 56,523 units (including single family homes and multi-family dwellings in 2018.
This number represents a nine percent increase (or 4,567 units) compared to the 2013-2017 average, The Los Angeles Daily News reports. However, compared to 2017, permits declined 1,750 units (3 per cent) — and this was the second decline in three years.
In fact, Southern California’s real estate market stalled and builders in the seven-county region cut permitting by the largest amount since the Great Recession ended.
Some of the reasons for the decline include NIMBY factors (neighbours resisting new development) but the slightly cooling job market last year created a large local supply of unsold newly built homes, even as the number of unsold resale listings increased.
Southern California’s slowdown was not reflected elsewhere in the state, with 58,809 permits filed, an increase of eight percent or 4,196 units in the year, the fourth consecutive yearly gain. Single family permits increased by 12 percent in 2018 while multi-family permits gained three percent.