SAN FRANCISCO (CBS SF) – The number of residential building permits in the Bay Area and California is actually going down, despite the strong demand for housing.

The Public Policy Institute of California analyzed the number of building permits issued between July of 2018 and June of this year.

Statewide, the number of permits was down 16 percent to 93,000, compared with the previous 12-month period.

Locally, there was a 49 percent drop in permits issued in San Mateo County. Alameda County also saw a double-digit drop in permits, down 30 percent.

In Santa Clara County, the number of permits was down 9 percent, while in Contra Costa County it was down 7 percent.

The slowdown in permits comes as the state tries to clear a large housing deficit and as Gov. Gavin Newsom seeks to build 3.5 million housing units by 2025. State housing officials said 180,000 new homes need to be built every year to make up for deficits and make room for future population growth.

Two Bay Area counties saw significant increases in residential construction permits. Permits in San Francisco were up 66 percent, while in Sonoma County the number of permits was up 47 percent, which is mostly attributed to rebuilding from the 2017 wildfires.

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