Pasadena Sees Mixed Development Trends Amid Shifting Priorities

The City of Pasadena reported mixed trends in development activity over the first half of the last two fiscal years, according to a municipal report released Thursday. The data, which covers building inspections, permit issuances, and code compliance, among other statistics, suggests a shifting landscape in the city’s economic priorities.

The most notable change was seen in the valuation of multi-family housing permits, which skyrocketed from $7.9 million in fiscal year 2023 to $51.5 million in fiscal year 2024 for the July to February six-month periods. 

In contrast, residential building permit valuations decreased slightly from $27.6 million to $24.5 million, while commercial permits dropped sharply from $169.5 million to $73.4 million in the same periods.

The variances in permit revenues and issued permits may signal changes in Pasadena’s economic landscape, possibly reflecting a shift in development priorities or investor confidence.

The city also reported a marginal decline in building inspections, from 26,612 in the first six months of fiscal year 2023 to 26,498 in the same period of fiscal year 2024. 

Accessory Dwelling Unit (ADU) permits followed a similar downtrend, decreasing from 131 to 97 year-over-year.

Revenues from plan check fees and permit fees have also seen decreases, with plan check fees dropping from $3.5 million to $2.6 million and permit revenues falling from $3.4 million to $3.1 million in the respective six-month periods.

In February, Pasadena initiated 194 new code compliance cases, with property maintenance issues accounting for 73 cases and noise, including leaf-blower infractions, accounting for 96 cases. The city resolved 317 cases out of 377 inspections related to zoning and property maintenance in the same month.

The report appeared to hint that a shift towards multi-family developments may be influenced by the continuing impact of remote work trends and the evolving nature of retail spaces. 

The dip in building inspections and ADU permit issuances could also hint at a plateau in construction activities or an adjustment period as developers and homeowners align with new regulations and market conditions.

The reported data underscores the City’s continuous balancing act between development needs and regulatory compliance.