Despite criticisms, California ranks third nationally in approved housing permits between 2016 and 2025, with a significant increase in permits over the previous decade. However, permit rates relative to population are lower than many other states.
Considering all the criticisms of California’s housing creation process, one might think that statewide production of new places to live is abysmal. — documents typically filed by developers just before construction starts — comparing figures for the 50 states and the District of Columbia along with demographic and economic data from the past decade.
Let’s start with California builders having 1.1 million permits approved to build residential units – both for ownership and renting – between 2016 and 2025. That’s the third-highest total among the states. Yes, third-highest in the nation. Those construction plans were 8% of 14.2 million permits approved nationally and trailed only the Golden State’s economic archrivals: Texas at 2.1 million and Florida at 1.6 million.
The past 10 years saw a 44% increase in permits over the previous 10 years. That period was marked by a building boom fueled by easy-to-get mortgages, followed by a market crash and the Great Recession. California’s percentage gain in permits ranked 19th fastest among states and was just below the nation’s 45% growth. It’s not the top-performing growth seen in Florida , Idaho , and Utah .
Nor was it Texas-sized growth, up 53%, ranked No. 12. Now, some might argue that California’s recent building pace does not match its hefty status as the nation’s most populous state with 39 million residents. California permits issued in the past decade were equal to 2.8% of the state’s population. That’s the 13th-lowest level among states and one-third of the nation’s 4.3%.
The nation’s best permitting was found in Idaho at 8.8% of its population, Utah at 8.5%, and South Carolina at 7.8%. The slowest permitting? Rhode Island at 1.2% of its population, Connecticut at 1.5%, and Illinois at 1.6%. Conversely, others might think the pace of construction should mirror population swings.
When comparing construction plans with new resident counts, you see that California had 2.4 permits per new resident. That’s the fourth-highest rate among the states and well above the national norm of 0.7 per person. The rivals? The 0.5 permits per new Texan ranked No. 40.
Florida’s 0.51 permits per new resident ranked 39th. So what can a Californian say they got from the past decade’s worth of permitting, no matter how one grades the pace? While that’s painful for house hunters, note that the surge was the 18th-smallest among states and trailed the 93% jump nationally. The smallest home-price increases were in Louisiana , the District of Columbia , and North Dakota .
Consider that, by this math, only nine states had smaller rent hikes. Also, the Golden State’s increase was below the 35% national gain. Smallest? The District of Columbia at 4%, Louisiana at 12%, and Oregon at 15%.showing that a Californian’s expenses for the roof over their head was 54% higher than what a typical American spent in 2024, the latest available stats.
Only the District of Columbia, at 55%, was worse. Just so you know, the U.S. housing bargains are in Mississippi , Arkansas , and Alabama . In Texas, housing costs were 3% below average, ranking 20th, while Florida housing was 22% pricier than the U.S. norm, the ninth-highest. But don’t overlook that California’s construction efforts have modestly mitigated the pain in the wallet.
According to this housing-cost yardstick, Californians paid, on average, 61% more than the typical American over the last 10 years. So, Golden Staters paying 54% extra for housing in 2024 – as harsh as that is to a household’s budget – represents a 7-percentage-point improvement compared to what Californians have been used to. HOA Homefront: Are personal security cameras OK?
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