Residential construction in Los Angeles is rising, with over 8,800 new home permits issued in the first half of 2026, nearly triple last year's figure and surpassing all of 2025. However, some permits replace wildfire-damaged homes, and overall housing production remains insufficient to address the housing shortage. Economic growth is focused on education and health services, while jobs in manufacturing, government, and other sectors have declined. High rents and home prices persist, and office vacancy rates exceed 23% countywide, over 30% downtown.