Part 2/10:
At the heart of the issue is a drastic reduction in apartment permitting—down by 66% in the first half of the year compared to the previous year. This slowdown in approvals effectively paralyzes new development, reducing future housing supply just when demand continues to grow due to ongoing migration and a robust tech sector.
The factors contributing to this sharp decline include bureaucratic hurdles, excessive regulation, and costly permitting processes. Despite the evident need for more affordable units, especially in a city already where rent prices are among the highest in the country, local governments have imposed layers of red tape that make building not only difficult but often financially unviable.