New Construction Update: What Los Angeles Buyers Should Watch in 2026

New construction remains an important part of the Los Angeles market, especially for buyers who value newer systems, modern floor plans, energy efficiency and fewer immediate renovation projects.

National construction data are mixed

The U.S. Census Bureau reported that privately owned housing permits rose to a seasonally adjusted annual rate of 1.443 million in July 2026, up 5.0% from June and 3.1% from July 2025. Housing starts, however, fell to 1.239 million, down 12.4% from June and 13.5% from a year earlier.

That does not directly predict what will happen on a specific Los Angeles block, but it shows why buyers should pay attention to both the pipeline of future supply and what is actually being built today.

What matters locally

In Studio City, Sherman Oaks, Toluca Lake, Encino, Tarzana, Woodland Hills, Burbank and nearby neighborhoods, new construction can vary dramatically in quality and value. Two homes with similar square footage may have very different construction standards, layouts, lot utility and resale appeal.

Questions to ask before buying new construction

• Who is the builder and what have they completed nearby?
• Were permits finalized and are major systems documented?
• How does the lot, street and orientation compare with nearby resale homes?
• Are finishes durable or simply visually impressive?
• How does the asking price compare on a price-per-square-foot and total-value basis?

New construction often carries a premium. The goal is to determine whether that premium is supported by location, design, quality and long-term marketability.

Considering a new-construction home? Text Artin directly before you write an offer.

Source: U.S. Census Bureau New Residential Construction release for July 2026, published August 18, 2026.