New entitlements for multifamily development in California could be an indicator that apartment construction is bouncing back. While new apartment deliveries and new starts decreased during the pandemic, Allen Matkins' John Condas says that new entitlement deals are getting done. Interest rates and new regulations are encouraging more housing production in California.

"I do think multifamily will rebound quickly, and this is due to both SB330 and the new Regional Housing Needs Assessment (RHNA), which was recently approved by the Southern California Association of Governments (SCAG)," Condas tells GlobeSt.com.

SB330 limits local jurisdictions from imposing on housing developments through restrictive laws—so long as the developer can submit a preliminary application. RHNA supports new development by requiring local governments to establish an entity that will oversee RHNA allocation. Condas calls this a acreage and density exercise because it will require nearly all of Southern California to update zoning to meet the assigned number of units under RHNA.