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2025 General Plan Annual Progress Report <br /> March 3, 2026 <br /> Page 4 <br /> In 2024 and 2025, issuance of building permits for new residential units decreased in <br /> Santa Ana and across California. Developer feedback provided to staff indicates that <br /> higher interest rates, increased costs of construction, labor market uncertainty, and other <br /> factors have introduced challenges, which have contributed to more modest housing <br /> production, especially for higher-density multi-family projects. <br /> While development of large-scale residential development in the last two years was lower <br /> than in previous years, application and permit issuance activity for for-sale townhome <br /> products remains strong. There are currently 10 applications under review for townhomes <br /> totaling 795 units, with another project in plan check and another two projects under <br /> construction. Moreover, permit activity for accessory dwelling units (ADUs) remains <br /> equally strong across all areas of the City. Of the 316 building permits issued in 2025, <br /> 82% were for ADUs, which also contribute to the City's affordable housing stock. <br /> ENVIRONMENTAL IMPACT <br /> There is no environmental impact associated with this action. <br /> FISCAL IMPACT <br /> There is no fiscal impact associated with this action. <br /> EXHIBIT <br /> 1. 2025 General Plan Annual Progress Report and Attachments <br /> Submitted By: Ali Pezeshkpour, AICP, Executive Director, Planning and Building <br /> Agency <br /> Approved By: Alvaro Nunez, City Manager <br /> City Council 10 — 4 3/3/2026 <br />