California building permits drop 29%

Green Escrow | New construction, housing

Rising mortgage rates and a sluggish housing market have dramatically slowed California’s construction industry, with the number of permits down 29 percent in October from the previous year.

Before things fell apart in October, California’s permitting pace was 14 percent above the pre-pandemic 2015-19 average. Again, 12,912 permits were filed in California in first 10 months of 2022, the most activity in the state since 2005.

California housing permits increasing

Green Escrow Services | Adding value to home

California’s Department of Finance reports that housing permits increased by nearly 22 percent from August to September, representing 41 percent growth from 2018. This is in line with Governor Gavin Newsome’s pledge to develop 3.5 million homes in Calfironia by 2025.

Overall, multi-family units increased by 47 percent while single-family dwellings actually decreased by 2 percent. Also, while the increases are encouraging, 2018 numbers were very low.