Los Angeles Housing Permits Dropped 23% in 2024 – What It Really Means
Los Angeles is facing a new problem in 2025. Building permits for residential housing dropped by 23% last year, according to recent reports. That number may sound like just another statistic. But in reality, it reflects a deeper crisis in how this city handles growth, affordability, and development.
For homeowners, developers, and policymakers, the drop is not just about fewer units on paper. It is about a system that is choking itself. The city says it wants more housing, yet its actions often do the opposite. This contradiction is why Los Angeles continues to fall behind in meeting demand.
As a consulting group that deals with permitting, zoning, and entitlement issues in Los Angeles, we see the human side of these statistics. We see developers who want to build but cannot. We see families waiting for homes that never break ground. Likewise, we see city policies that slow down the very progress they claim to support.
So, let’s look at what this decline really means — and why it matters to everyone in Los Angeles.
📊 Los Angeles Housing Permits: 2023 vs 2024
Source: Urbanize LA, 2025
The Numbers Behind the Decline
The numbers are straightforward but alarming. In 2023, Los Angeles approved 11,311 residential units. In 2024, that number fell to 8,706 units. That is 2,605 fewer homes permitted in a single year.
Some may argue that this is just a temporary dip. Others may blame interest rates or rising construction costs. Both are true factors, but they are not the full story. The decline is part of a pattern that shows how fragile the city’s housing pipeline really is.
When permitting drops, it sends a ripple effect across the housing market. Fewer units permitted means fewer units built. Fewer new homes mean higher rents and higher home prices. And in Los Angeles, where housing costs are already among the highest in the country, that makes an already dire situation worse.
It also means the city will miss its RHNA targets — the state-mandated housing goals. Falling short is not just embarrassing for city leaders. It can also trigger legal challenges and force Sacramento to step in.
Simply put, these numbers show a city that is not keeping up. And if the trend continues, Los Angeles risks making its housing crisis permanent.
Policy Obstacles: ED1, ULA, and CEQA
Why are permits dropping so fast? Policies play a big role. On paper, Los Angeles leaders talk about building more housing. In practice, they add new restrictions, taxes, and layers of review.
Take ED1, for example. The Emergency Directive was meant to speed up affordable housing approvals. Instead, it has become a tool to limit development in certain areas. Many city leaders pushed back against allowing multifamily housing in single-family neighborhoods. That decision alone blocks thousands of potential units.
Then there is Measure ULA, often called the “mansion tax.” It adds a heavy transfer tax on properties worth more than $5 million. Supporters said it would raise money for housing programs. But they ignored the impact on multifamily housing projects. Many apartment buildings fall into that price range, and the tax discourages sales, financing, and development.
And of course, we cannot forget CEQA, California’s environmental law. CEQA is important for protecting the environment, but in Los Angeles it often gets weaponized. Opponents of development use it to file lawsuits and delay projects for years. Even Governor Newsom suspended CEQA in certain cases after wildfires, admitting that the process can block urgent rebuilding.
All three — ED1, ULA, and CEQA — show how policies meant to help can sometimes hurt. They create uncertainty. They slow down deals. And they leave developers asking whether it makes sense to build in Los Angeles at all.
Developer Reality: Costs, Financing, and Delays
Behind every permit is a developer trying to make the numbers work. In 2024, those numbers often didn’t add up. Rising interest rates pushed financing costs higher. Material prices remained unstable. Labor shortages slowed timelines. And on top of all that, city approvals dragged on for months, sometimes years.
Many developers told us the same thing: projects no longer “pencil.” In other words, even if the land is ready, the costs of construction and compliance outweigh potential returns. A deal that worked in 2022 doesn’t work in 2025.
Add the uncertainty of policies like ULA, and investors grow cautious. Some lenders pull out. Others demand higher rates or stricter terms. Developers who once moved forward with confidence now pause or walk away.
This is not just about profit margins. When projects stall, jobs vanish. Construction workers, architects, engineers, and consultants all lose opportunities. Communities lose housing that could stabilize rents. The economic impact of permitting delays stretches far beyond one developer’s balance sheet.
In Los Angeles, the developer reality is harsh: it’s not that they don’t want to build. It’s that the city makes it nearly impossible to build at scale.
🔄 Why Permits Get Stuck in Los Angeles
Source: JDJ Consulting Analysis
How Politics and Public Opinion Shape Permitting
Housing is not just an economic issue in Los Angeles. It is a political battlefield. Every new project, especially in established neighborhoods, faces public scrutiny and resistance.
NIMBYism (Not In My Backyard) remains powerful. Many residents oppose new apartments near their homes. They argue about traffic, parking, or neighborhood character. They attend city council meetings, file appeals, and pressure local leaders to block development.
Politicians respond to this pressure. Instead of championing housing production, they often side with vocal opponents. They frame themselves as defenders of communities, even as those decisions deepen the housing crisis.
At the same time, public opinion is shifting. Younger residents and renters are more likely to support new housing. They see the cost of rent rising and want solutions. But they often lack the political influence that long-term homeowners hold.
This divide — between those who need housing and those who want to preserve the status quo — shapes every permitting decision. It explains why Los Angeles struggles to approve enough projects, even when the need is obvious.
The Bigger Housing Picture in L.A.
Step back, and the permitting decline is just one part of a larger story. Los Angeles has faced a housing shortage for decades. Every year, demand outpaces supply. Every year, rents rise faster than wages.
The city is supposed to add nearly half a million housing units by 2029 under state housing goals. But at the current pace, that number is unrealistic. Missing the target means the crisis will continue, and more families will be priced out.
Meanwhile, homelessness remains a visible and urgent problem. Fewer permitted units mean fewer chances to house people leaving the streets. Supportive housing projects get caught in the same delays as market-rate developments. The cycle repeats, while public frustration grows.
Los Angeles is not alone. Cities across California face similar struggles. But Los Angeles is the largest city in the state and sets the tone for policy. If Los Angeles cannot figure out how to permit and build more housing, smaller cities have little hope of meeting their own goals.
The bigger picture is clear: this is not just about a 23% drop. It’s about whether Los Angeles can adapt fast enough to avoid long-term decline in housing opportunity.
Can Faster Permitting Alone Fix the Crisis?
Many argue that speeding up permits will solve the problem. It would help, but it is not enough. The decline in 2024 shows how many forces collide at once — costs, politics, financing, and regulations.
Faster permitting can reduce holding costs. It can give developers more certainty. It can prevent projects from stalling mid-process. But if interest rates remain high or policies keep shifting, approvals alone cannot guarantee construction.
To really fix the crisis, Los Angeles needs a layered approach:
Streamline permitting so projects move forward within months, not years.
Stabilize policies to reduce uncertainty for investors and developers.
Encourage financing tools that make multifamily housing more attractive to lenders.
Address construction costs by supporting workforce training and reducing material bottlenecks.
Balance environmental protections with housing needs so CEQA reviews cannot be abused.
Permitting reform is a necessary step. But unless Los Angeles aligns the other pieces, the city will continue to see fewer projects built than it needs.
Where JDJ Consulting Group Fits In
This is where consulting firms like JDJ Consulting Group come in. Developers often feel overwhelmed by the maze of city regulations. They face zoning hurdles, shifting ordinances, and long review times. Having a guide through that maze makes the difference between a stalled project and a completed one.
At JDJ, we work on three main fronts:
Zoning and entitlement consulting: helping clients understand what is allowed and how to maximize site potential.
Permit expediting: navigating city offices, coordinating with departments, and keeping applications moving forward.
Strategic planning: anticipating policy changes, avoiding common delays, and creating realistic project timelines.
In a city where approvals take years, this support is not optional. It is essential. Developers who try to move alone often hit walls they did not expect. Those who bring in experienced consultants gain speed, certainty, and efficiency.
For Los Angeles, permit consulting is more than a service. It is part of the housing solution.
💰 Housing Cost Estimator
❓ Quick Quiz: Los Angeles Housing
Question: What caused the biggest slowdown in LA permits?
Opinionated Takeaways: What Needs to Change
Looking at the 23% drop, one thing is clear: Los Angeles cannot afford business as usual. The city must change its approach if it wants to meet its housing goals.
Here are the key shifts needed:
Stop adding roadblocks disguised as reforms. Policies like ED1 and ULA were meant to help, but they slow projects down. They need revision.
Listen to housing advocates, not just opponents. NIMBY voices are loud, but they do not represent the future needs of the city.
Make permitting transparent. Developers should know how long reviews take and what is required, without endless surprises.
Reward production, not obstruction. Cities that approve projects faster should receive more state support. Cities that drag their feet should face pressure.
Think long-term. Los Angeles must plan beyond one election cycle. Housing takes years to build, and short-term politics cannot keep blocking progress.
My opinion is simple: Los Angeles has the resources, the land, and the demand to solve its housing shortage. What it lacks is the political courage and administrative efficiency to make it happen.
The 23% drop is not just a warning sign. It is a wake-up call.
Conclusion: A Path Forward for L.A. Housing
Los Angeles has reached a breaking point. A 23% drop in housing permits is not just a dip in numbers. It is a sign of a system failing to deliver on its promises. The city talks about affordability, density, and growth, but policies often undercut those goals.
The path forward must be clearer and bolder. Developers need certainty. Communities need new housing. And city leaders need to prove they can match their words with action.
A real solution requires three commitments:
Faster approvals. Housing should not take years to clear bureaucratic hurdles.
Smarter policies. Laws must encourage building, not drive investors away.
Collaborative planning. Consultants, developers, and city leaders must work together instead of working against one another.
At JDJ Consulting Group, we believe Los Angeles can still turn the tide. We see developers ready to build and communities ready to grow. What they need is a process that supports, not blocks, progress.
The permitting decline is serious, but it is not permanent. With reform, transparency, and expert guidance, Los Angeles can unlock its housing pipeline again. The choice is simple: either continue down the path of delay and scarcity, or embrace change and create the homes this city desperately needs.
The wake-up call has been delivered. Now it’s time to act.
Work With JDJ Consulting Group
If you’re planning a project in Los Angeles, don’t let permits, zoning rules, or city delays stop you. At JDJ Consulting Group, we help developers, investors, and property owners move projects forward with confidence.
Los Angeles may be slowing down on housing permits, but your project doesn’t have to stall. With the right guidance, you can overcome obstacles and keep building.
Ready to move forward? Call JDJ Consulting Group today at (818) 793-5058 to schedule a free consultation.
📉 Monthly Housing Permits in Los Angeles (2024)
Source: Urbanize LA, 2025 (illustrative)
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Frequently Asked Questions: Los Angeles Housing Permits
What caused the 23% drop in Los Angeles housing permits in 2024?
The drop came from high construction costs, financing challenges, and restrictive policies like ED1, ULA, and CEQA. Together, these factors slowed development and discouraged new housing projects, leading to fewer permits approved compared to 2023.
How many housing units were permitted in Los Angeles in 2024?
Los Angeles permitted 8,706 residential units in 2024. That is 2,605 fewer units than in 2023, when the city approved 11,311 units. This 23% decline highlights ongoing struggles in meeting housing demand and state housing goals.
How does ED1 affect housing development in Los Angeles?
ED1 was designed to speed up affordable housing approvals, but in practice it restricted multifamily housing in many neighborhoods. The directive limited where developers could build, reducing project feasibility and slowing down overall housing production.
What is Measure ULA and why does it matter?
Measure ULA, known as the “mansion tax,” applies a transfer tax on property sales over $5 million. While intended to raise funds for housing programs, it discourages investment in multifamily housing projects because many apartment buildings fall into that price range.
How does CEQA impact housing permits in Los Angeles?
CEQA is meant to protect the environment but often gets used to delay housing projects. Opponents file lawsuits under CEQA, stalling approvals for years. This creates uncertainty for developers and slows down housing construction across Los Angeles.
Why do developers say projects no longer ‘pencil’?
Developers use the term “pencil” to describe whether a project’s numbers work financially. With rising interest rates, higher material costs, labor shortages, and new taxes, many Los Angeles projects no longer generate enough return to justify construction.
What role does NIMBYism play in permit delays?
NIMBY opposition is a major barrier. Residents often protest new housing near their neighborhoods, citing traffic, parking, or character concerns. This opposition pressures city leaders to block or delay projects, adding another hurdle for developers.
How does the permit decline affect renters in Los Angeles?
Fewer permitted units mean fewer homes get built. This keeps housing supply tight, driving rents and home prices even higher. For renters, the decline translates into fewer options and greater competition in an already expensive market.
Can faster permitting alone solve the housing crisis?
Faster permitting helps but cannot solve the crisis alone. High costs, political resistance, and financing challenges must also be addressed. Without broader reform, speeding up approvals will not be enough to meet Los Angeles’s housing needs.
What is JDJ Consulting Group’s role in housing development?
JDJ Consulting Group helps developers navigate zoning rules, entitlement challenges, and permit delays. By expediting approvals and creating strategic plans, JDJ reduces uncertainty and helps projects move forward despite policy and market obstacles.
How does the permit drop affect Los Angeles housing goals?
The city must build nearly 500,000 units by 2029 under state housing goals. With the current permitting pace, Los Angeles risks falling far short, which could trigger state intervention and worsen the housing shortage.
What can Los Angeles do to increase housing permits?
Los Angeles can increase permits by streamlining reviews, revising restrictive policies, stabilizing financing conditions, and balancing environmental reviews with housing needs. Transparent timelines and political will are key to reversing the decline in approved units.
How does the City of Los Angeles handle building permit applications?
The City of Los Angeles processes permit applications through the Department of Building and Safety. Applicants must provide building plans, site details, and supporting documents. Each submission is reviewed against building codes, zoning requirements, and local and state law. This ensures that the proposed construction project meets all safety and compliance standards before permit issuance.
What makes plan check reviews critical in Los Angeles construction projects?
A plan check functions as an early safeguard in development. During a preliminary plan check, officials review plans and specifications for compliance with the Los Angeles Building Code. Identifying errors at this stage prevents costly redesigns and reduces delays in the permit process. For developers, a smooth plan review is key to keeping a construction project on schedule.
Why do multifamily housing projects face stricter permit requirements?
Multifamily housing projects require additional layers of oversight compared to single-family homes. They often involve electrical permits, mechanical permits, and approvals for fire sprinklers. Because these developments affect more residents, the Los Angeles Department of Building and Safety applies stricter code enforcement. Developers must meet zoning codes, environmental guidelines, and RHNA targets before final approval is granted.
How do construction costs influence building permit decisions?
Construction costs play a major role in whether developers pursue housing permits. Rising labor and material prices can cause delays or scaling back of projects. To save time and reduce financial pressure, many turn to permit expediting services. Faster approvals help balance budgets and ensure that projects remain financially viable in Los Angeles’s competitive housing market.
What role does code enforcement play after permit issuance?
Code enforcement becomes active once a permit has been issued and work begins. Inspectors verify that the construction project matches the approved building plans and follows the Los Angeles Building Code. If violations are found, projects can be stopped until corrections are made. This process protects public safety and ensures compliance with local and state law.
How important are supporting documents in the permit process?
Supporting documents serve as proof of accuracy in every stage of the permit process. These may include a legal description of the property, assessor parcel number details, or structural calculations by a California-licensed engineer. Without them, plan review and final approval may stall, leading to costly delays. Proper documentation helps streamline both plan checks and inspections.
Why is the Certificate of Occupancy essential for Los Angeles developers?
A Certificate of Occupancy is the final step before residents can move into a completed building. It confirms that the structure meets zoning codes, building codes, and all inspection requirements. Without this document, developers cannot legally lease or sell units. Securing a Certificate of Occupancy is therefore essential for completing a multifamily housing project in Los Angeles.
How does zoning affect permit applications in Los Angeles?
Zoning codes define what can be built on a property within the city and county of Los Angeles. They determine structure types, building height, and allowable uses. If a project does not align with current zoning, the permit application may be denied or require special approvals. Developers must understand zoning codes before submitting plans to avoid unnecessary complications.
What happens if a construction project fails a plan review?
If a project fails plan review, it cannot move forward until corrections are made. This often involves revising plans and specifications to comply with the Los Angeles Building Code or zoning requirements. Failing a review can cause significant delays, which is why many developers seek professional guidance during the preliminary plan check stage.
How can property owners track the status of their permit applications?
Property owners in Los Angeles can use online tools provided by the Department of Building and Safety to track permit applications. By entering a legal description or assessor parcel number, applicants can view updates on plan review, inspection services, and final approval. This transparency helps owners and contractors stay on top of the permit process.
