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
Year #Blgs #Units #Blgs #Units #Blgs #Units #Blgs #Units
2005 11,819 11,819 482 1,175 395 8,887 12,696 21,881
2006 9,548 9,548 407 970 399 13,508 10,354 24,026
2007 6,773 6,733 410 968 395 10,568 7,578 18,309
2008 3,091 3,091 292 649 243 7,640 3,626 11,380
2009 2,185 2,185 221 490 99 2,304 2,505 4,979
2010 2,255 2,255 161 347 177 4,464 2,593 7,066
2011 2,110 2,110 173 380 135 7,130 2,418 9,620
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.