Let's Do the Numbers! The 2025 Stats!
Hello Readership,
The City of Santa Barbara has some very nifty reporting tools in Accela, and I’ve used them to put together this year end snapshot of local permitting activity. After spending ten (oh… so… long…) years in real estate, I’ll admit, I still have a soft spot for the comprehensive MLS style year end reports. Construction doesn’t have a data system (or trade advocacy) nearly as strong as the Realtors, but the City’s reporting gives us just enough to spot some meaningful trends. And the trends this year are interesting. At least to me, and maybe to you too.
2025 Santa Barbara Permitting Trends
The City’s building permit data reveals a clear shift in how homeowners are thinking, and spending.
- 2,188 building applications were submitted between Jan 1–Dec 2, 2025, compared with 2,454 during the same period in 2024, a 10.8% decrease. Fewer projects entering the pipeline.
- At the same time, 1,701 permits were issued in 2025, up from 1,121 in 2024, a 51.7% increase in approved, active work. The projects that are in the pipeline have a much higher level of commitment than the year before.
This is a rare combination: fewer new applications coming in, yet dramatically more projects moving forward.
My interpretation:
These stats show what we see in our business, homeowners are not exploring projects casually, they are committing to them. The amount of our design projects converting to construction has skyrocketed for us in the last year. The people who come to us to design, are ready to go. Woohoo!
This sort of movement usually reflects broader economic behavior. With interest rates remaining high and Santa Barbara’s housing market continuing to be constrained by low inventory, homeowners face a simple equation: Buying a new home is expensive, very competitive, and often an uncontrollable roller coaster. Even with the best of Realtors, and all cash, it’s tough out there. Improving the home you already own has a level of control, predictability, and customization potential that a purchase does not.
Instead of searching for a home that meets their needs, people are choosing to shape their homes into what they want, adding space, modernizing layouts, improving energy efficiency, and finally tackling long postponed projects.
The permitting data confirms it: Santa Barbara is in a remodeling driven market.
A few more thoughts
A permit actually being issued is not a casual step, it reflects that:
The homeowner and design team completed every required correction and submittal. Most “maybe someday” projects never make it this far.
Fees were paid, which is a financial commitment most people don’t make unless they intend to move ahead.
The City pushed more projects across the finish line, which may indicate improved workflow or a clearing of backlog.
Most importantly, the project is now legally ready to begin construction, the real point of commitment. Let’s go!
So while fewer new applications came in, the projects already in motion seem to have been more serious, and viable. Homeowners weren’t window shopping, they were following through.
It is ironic that Kiel and I had a permit issued on our old house, and decided to make moves on a new house this October, quite out of the blue. We left our remodel plans (and all the money we invested in them) in the dust. The data shows that we Kellows are in the minority, and not behaving statistically normal. How cool! Let me tell you, this move has been quite the endeavor. I do not recommend. Maybe ask me in a year how I feel. Thank you to everyone who helped us make it to the finish line, especially Karin Napel at 1st Century Bank. It truly took a village to make this happen, as it always does.
Anyways… Thinking About Improving Your Home in 2026?
If you or someone you know has been considering a remodel, this is an excellent moment to reach out. Santa Barbara homeowners are clearly investing in staying put, and we are here to help. You can schedule a consultation below.
We love what we do, and we’re always grateful for your referrals and kind words. When you send someone our way, it truly makes our day.
Sincerely,
Emily Kellow
Office Manager Extraordinaire
Voted Most Amazing Office Manager by Kiel Kellow 4 consecutive years in a row!
