Los Angeles County Building Permits & Home Prices
A major economic indicator is trends in residential building permits. When building permits are issued, construction employment increases as homes are constructed. Other real estate-related employment sectors have increases following construction as properties are sold or leased. Other retail sector jobs are then created once residential units are occupied by owner or renters.
As shown in the following table, building permits to construct 21,881 to 24,026 residential units were issued in 2005 and 2006, followed by a sharp decrease after 2007. The permit level for 2011 was only for 9,620 units. This is notably below peak levels but reflects a significant increase from the figures between 2009 and 2010. This is a positive sign of economic recovery for Los Angeles County. The 2nd Quarter for 2012 reported cumulative building permits to construct of 5,644 units.
|RESIDENTIAL BUILDING PERMITS – LOS ANGELES COUNTY|
|Single-Family||2 to 4 Family||5+ Family||Total|
|2nd Qtr 2012||1,162||1,162||83||180||101||4,302||1,346||5,644|
Another key indicator is home prices. According to DataQuick, the median home price in Los Angeles County was $335,000 during August 2012 (most recent data available). This is a 6.3% increase over the past year, a positive sign for Los Angeles County.