California’s permits for new housing dipped to an 11-year low, minus the pandemic-era lockdowns.

My trusty spreadsheet reviewed Census Bureau data on California building permits , focusing on how the first half of 2025 compared with historical trends dating to 1988.

Statewide, 49,400 permits were filed in the year’s first six months. Minus 2020 – when news of coronavirus’ emergence shut down much of the economy – the last time a year started more slowly was 2014.

This year’s first-half permitting was a 3% drop from a year earlier and 14% below the pandemic-era building boom in 2020-2023. This year’s permitting is also 16% below the 37-year average pace.

Why is construction cooling?

Elevated mortgage rates have made it hard for many new projects to pencil out profitably. The building

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