California Housing Permitting Collapses 45% From 2022 to 2023

California housing permitting collapsed 45% from 135,565 homes in 2022 to just 74,720 in 2023, according to the California Department of Housing and Community Development’s data at time of the story’s publication. Housing experts say rising interest rates are largely to blame for the phenomenon as rising construction costs and interest payments make fewer projects pencil out for developers. With the state facing a 4.5 million home housing shortage, it will take over 60 years at current permitting levels to overcome the housing shortage.