If there is one data point that best defines an area's home construction rate, it is the number of home building permits being issued. And in Silicon Valley, it's been dropping like a rock.

A group called HomeAbroad just released a report saying that, nationwide, the average number of permits issued in 2025 compared to 2020 declined by 32 percent in large cities. But leading the list is the San Jose/Sunnyvale/Santa Clara area, where the permits have dropped by a whopping 68 percent from five years ago.

"I wish I could say it surprised me, but it does not, at all," said Alex Shoor, executive director of Catalyze Silicon Valley, a local housing advocacy group.

He said it all boils down to how expensive it is to build in the area, from land costs to interest rates to manpower shortages.

See Full Page