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Can AI Really Help Speed Up the Construction Permitting Process?
Construction Technology

Propmodo Technology
By Franco Faraudo · June 11, 2025
Greetings,
CoStar’s aggressive push into residential real estate data is drawing criticism from investors. Third Point, a hedge fund holding roughly 2 million shares of CoStar stock, sent a note to its investors stating that CoStar’s $156 million acquisition of Homes.com and the additional $3 billion invested in the platform have "obscured rapid growth in the core business." While CoStar has already made changes to key leadership positions, Third Point maintains that "it is time for CoStar to begin the journey of meaningful self-help."
This week, we are examining the much-maligned construction permitting process. With limited real intelligence in government bureaucracies, states like California are beginning to experiment with artificial intelligence to speed up development. But how much can AI really help? Government agencies have never been known for swift tech adoption. Fortunately, several tech companies are also stepping in, using AI to help streamline and modernize the permitting process.
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Bytes
🤖 Bot or not?
Real estate companies are blurring the line between people and software by giving their AI agents human names and attributes.
✈ Flyover
The State of Michigan is experimenting with using drones to help identify opportunities to improve municipal building operations and energy efficiency.
🌱 Grow up
Realty Income REIT is now investing in a high-tech property niche, urban farming.
Construction
Overheard
A huge, fixable barrier to state & federal incentives for housing construction is building permit data.
Did LA permits spike to 1980s highs, averaging ~20k homes?
Or is LA chugging along near ~15k homes?
It's a ~30% swing between Census BPS vs. California HCD sources😬
— Alex Armlovich (@aarmlovi)
4:43 PM • Apr 1, 2025
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Propmodo Technology is edited by Franco Faraudo with contributions from readers like you and the Propmodo team.
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