Tenants in Los Angeles and Orange counties may have some new rental options in their future, as apartment developers started 2026 with a splash \u2014 filing the second-highest number of building plans in the past 36 years.<\/p>\n
My trusty spreadsheet<\/a> found this construction surge in building permit data from the Census Bureau<\/a>. These stats estimate plans for new multifamily housing, a segment of construction that primarily consists of apartment complexes.<\/p>\n Permits don\u2019t immediately translate into more choices for tenants, as the construction process is lengthy. And not every permitted project gets built. But it\u2019s hard to complain about more planning for more housing, unless you don\u2019t like more housing.<\/p>\n In the first eight months of 2026, construction permits were filed for 16,643 multifamily units in the two-county metropolitan area. How high is that?<\/p>\n \u201482% higher than the same period a year earlier.<\/p>\n \u2014The best start to a year since 2015 \u2013 and the second best since 1990.<\/p>\n \u201432% above L.A.-Orange County\u2019s pace over the past 10 years, when California began its homebuilding push to address its housing affordability challenges.<\/p>\n With a longer-term lens, the pace has increased, too. L.A.-Orange County\u2019s 192,101 multifamily permits during the last 10 years marked a 32% increase from the previous decade, an era scarred by the Great Recession.<\/p>\n One active builder<\/p>\n Real estate giant Irvine Co. is an example of who\u2019s building rentals.<\/p>\n The Newport Beach developer is constructing what will eventually be 8,434 apartment units across eight Orange County projects, primarily in Irvine, as well as in Tustin and Newport Beach.<\/p>\n Company officials say construction of roughly 1,000 units was permitted and started last year \u2013 with a similar amount set for 2026. The same building pace is anticipated to continue for seven years.<\/p>\n A key trend in Irvine Co.\u2019s apartment push<\/a> is the use of old retail space and land previously designated for office buildings. The idea is to push housing closer to where residents shop and work.<\/p>\n \u201cThere\u2019s quite a group, particularly younger people, looking for that kind of living environment,\u201d Rob Elliott, the company\u2019s senior vice president for planning and design, said last year.<\/p>\n No surge elsewhere<\/p>\n Curiously, multifamily construction plans were slowing elsewhere in Southern California.<\/p>\n The Inland Empire\u2019s 2,384 multifamily permits through August were the slowest start to a year in 2022, down 33% year over year and 8% below the 10-year average.<\/p>\n In San Diego County, the 4,359 multifamily permits through August were the worst start since 2020, down 17% year over year, and 1% below its 10-year average.<\/p>\n Payoff at last?<\/p>\n Are all the efforts to boost homebuilding in California finally paying off?<\/p>\n In the first eight months of 2026, permits for 36,600 multifamily housing units were granted statewide. Thanks in good part to Los Angeles and Orange counties, that\u2019s a 33% gain in a year and the third-best start to a year since 1990.<\/p>\n And if you look at it over the long term, you see that this year\u2019s multifamily permitting pace is 12% faster than the 10-year average.<\/p>\n Plus, the 502,500 permits issued in the past 10 years represent a 48% improvement over permitting in the burst-bubble-tainted decade before.<\/p>\n Now, it may not be enough construction to solve California\u2019s affordability headaches, but the increased permitting is clearly movement in the right direction.<\/p>\n Plus, it\u2019s 32% above L.A.-Orange County\u2019s pace over the past 10 years.<\/p>\n Cooler nation<\/p>\n California\u2019s multifamily construction surge contrasts with the rest of America.<\/p>\n Years of rapid apartment development haven\u2019t produced enough renters to fill the new units in many parts of the nation. So building has chilled.<\/p>\n Outside of California, 310,400 permits were filed to start in 2026 \u2013 up only 2% from the previous year. And this year\u2019s pace is 4% slower than the 10-year average.<\/p>\n Tenant Talk by Jonathan Lansner covers the renter\u2019s world. He\u2019s the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com<\/a><\/p>\n September\u2019s most popular Southern California real estate stories \u2026<\/p>\n No. 1: Taco Bell relocates its longtime Irvine headquarters <\/a><\/p>\n No. 2: Diane Keaton\u2019s former Laguna Beach flip lists for $10 million<\/a><\/p>\n No. 3: What\u2019s the best housing market in Southern California? <\/a><\/p>\n No. 4: Dolly Parton\u2019s former Solvang cottage compound lists for $2 million <\/a><\/p>\n No. 5: Newport Coast home linked to Latin music star Peso Pluma seeks $14 million<\/a><\/p>\n No. 6: Ultra-luxe, \u2018overengineered\u2019 beachfront Dana Point estate seeks $65 million <\/a><\/p>\n No. 7: California wants more fines against Huntington Beach in housing lawsuit <\/a><\/p>\n No. 8: Laguna Cliffs Marriott Resort rebrands amid renovation <\/a><\/p>\n No. 9: Historic Dana Point home by Hollywoodland developer lists for $2.2 million<\/a><\/p>\n No. 10: Newport Beach waterfront estate with multi-boat dock lists for $58 million<\/a><\/p>\n No. 11: Costa Mesa approves plan to replace Fairview Center with 2,300 new homes <\/a><\/p>\n No. 12: 2-year-old Zia apartment complex sells in Anaheim <\/a><\/p>\n