One Bay Area region is driving the housing permit slump |
Despite the need for more housing in the Bay Area, the number of permits issued to build multifamily housing has declined by 41% so far this year in the San Jose metro area — the largest decline among the major metros in California. Experts chalk this up to labor shortages, opposition to building apartments and increased prices for building materials, but also see promise in various technologies, including artificial intelligence, to help make the process easier.
In the region, which includes Santa Clara and San Benito counties, 1,013 multifamily housing permits were issued from January to July 2025, compared with 1,729 permits during the same period in 2024, according to U.S. Census Bureau data. The data only runs through July 2025 because of reporting delays due to the government shutdown.
“Residential construction being challenging in California is a longstanding situation,” Rob Warnock, a senior research associate for Apartment List, told SFGATE during a phone call. “It’s a combination of red tape versus local opposition, [and the] cost of building materials and construction labor. It’s been a problem for the housing stock.”
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Warnock noted that the fewer permits issued, the more expensive it is to rent a home. Rent prices increased by 5% year-over-year in the San Jose metro area from December 2024 to December 2025, ranking the area No. 2 nationally for increases, according to Apartment List. The metrowide median rent cost was $3,050 per month. San Francisco trailed close behind with a 4.6% increase.
An aerial view of downtown San Jose, Calif.
Another........