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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 Nuñez, City Manager <br /> <br />