The U.S. Census Bureau reported that housing starts jump unexpectedly in July, rising 9.5% from June to a seasonally adjusted annual rate of 1.5 million units. Despite the uptick, permits for new construction dipped by 1.2% as builders remain cautious. Nationally, single-family starts increased 2.8%, yet they remain down 5% year-to-date, with the South driving most gains. Builder sentiment weakened in August, as the NAHB Housing Market Index fell near its lowest level in over a decade outside the pandemic. Housing affordability and soft demand are key concerns. For many in the San Gabriel Valley, these national trends could affect local markets. Developers in El Monte and Rosemead are monitoring permit declines even as they break ground on new homes. Renters and buyers in Baldwin Park and South El Monte may see fewer options over the coming months.
Housing Starts Jump Across the Region
Multifamily construction has gained momentum across the U.S., with starts up nearly 19% year-to-date on strong rental demand amid high homeownership costs. Though multifamily permits dipped in July, the overall trend holds steady in the South and Midwest. Local developers in Arcadia and Temple City have reported rising interest in apartment and condo projects. Rents remain high in Irwindale and Baldwin Park, making multifamily builds more viable than single-family homes. Nationally, multifamily permits total about 450,000 units so far this year, helping keep vacancies low. Still, some Inland Empire builders say labor and material costs are slowing new starts. Any pullback in permits could tighten supply further. The City of Rosemead approved a 120-unit apartment complex in July, and LA County planners are negotiating affordable-housing requirements on several proposed projects.
Permits Decline Signals Continued Single-Family Construction Weakness
The trend in single-family permits has been downward since February, signaling ongoing weakness in residential construction. In July, single-family permits fell to a pace of 780,000 units, marking a four-month low. Builders are reluctant to commit to new detached homes due to affordability pressures. Mortgages remain costly, with 30-year rates near 7%. In the Inland Valley, several proposed subdivisions have stalled. An El Monte builder recently delayed a 30-lot project over financing concerns. In Arcadia, a luxury home plan was scaled back after bank appraisal issues. The NAHB forecast that single-family starts could slip further if builders maintain caution.
For residents, fewer single-family starts could mean less inventory and persistent price pressure. Rental alternatives in the San Gabriel Valley may become more attractive. Local officials say adjusting zoning to allow more infill construction could help. The City of Temple City is reviewing small-lot ordinances to spur homebuilding. Meanwhile, multifamily projects may fill some gaps. Stakeholders in Irwindale note that mixed-use developments are under review. As national and local markets adapt, community members will watch closely for changes in permit trends and housing starts. Community groups and city councils will discuss housing strategies in upcoming meetings.
