Permits for planned LA developments are building

Permit approvals for new construction projects in Los Angeles are rising for the first time since the beginning of the pandemic.

The Department of Buildings and Safety issued 55 percent more permits in the second quarter compared to the same period last year, according to Urbanize.

A total of 40,888 permits were issued between April and June, compared to 26,324 in 2020.

The total valuation of permits increased 15 percent year over year, to $1.5 billion in Q2, from $1.2 billion over the same period last year.

The average value of each permit was $35,685, or about $10,000 less than the average value of permits issued in Q2 2020, possibly a sign that developers undertaking smaller projects are more confident.

Construction projects did not shut down last spring despite lockdowns, but developers often had trouble navigating the different restrictions in place and many projects were put on hold, in part because of economic uncertainty and lender tightening.

The city also put in place more stringent worksite safety rules, which could have discouraged builders.

Despite the uptick in building permits so far this year compared to the same period in 2020, the number is still down considerably from pre-pandemic levels.

The city issued nearly 48,000 permits in the second quarter of 2019.
But there is another bright spot for developers — so-called “plan checks” increased 27 percent year-over-year to 18,006 last quarter.

Plan checks are reviews of projects submitted to the city, and are an indication of how many new projects are in the works. The increase shows that developers are eager to work on new projects.

[Urbanize] — Dennis Lynch