"I think the numbers are bearing out that it's just really difficult to get the financing lined up to transition to the construction phase. We very much wish that we were making more proportionate progress towards our (state target). There's just limited ability for us to do that if the projects aren't forthcoming."
"According to Murdock, developers have reported that persistently high interest rates and construction costs are making it difficult for projects to pencil out. In 2025, Mountain View issued building permits for 388 homes, bringing the total number to 1,867 over a three-and-a-half year period, according to a city staff report presented to the Environmental Planning Commission last month."
Mountain View faces significant challenges meeting its state-mandated housing goal of 11,135 new homes by 2031. While developers have submitted plans for over 10,000 homes, only a fraction have begun construction. Building permits issued have declined over the past two years, with just 388 permits issued in 2025, bringing the three-and-a-half-year total to 1,867 homes—representing only 16.8% of the required target. High interest rates and elevated construction costs are preventing projects from becoming financially viable, making it difficult for developers to secure financing for the construction phase. City officials acknowledge the gap between planning approvals and actual construction progress, though they note that year-to-year permit fluctuations may not indicate a long-term trend.
Read at San Jose Spotlight
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